Financials
Quarterly Report For The Financial Period Ended 30 June 2025
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Unaudited Condensed Consolidated Statement Of Profit Or Loss And Other comprehensive Income For The Year Ended 30 June 2025
Unaudited Condensed Consolidated Statement Of Financial Position as At 30 June 2025
Review of Performance
The Group recorded a quarterly revenue of RM144.9 million in the 3-month ended 30 June 2025 (“2Q2025”) as compared to RM171.4 million registered in the 3-month ended 30 June 2024 (“2Q2024”), representing a decrease of 15.5%.
The Group's revenue was mainly contributed by the ATE and FAS segments, constituting approximately 57.1% and 42.2% respectively of the Group's total revenue in 2Q2025.
The table below outlines the revenue of the respective operating segments, including elements of inter-segment transactions.
The following table sets out revenue breakdown by customers' segment for the Group:
The Group closed its 2Q2025 with a profit before taxation of RM17.6 million (2Q2024: RM32.1 million), representing a decrease of approximately 45.0% from last year's corresponding period. The Group closed its first half of the year 2025 with a profit before taxation of RM38.2 million, a drop from a profit before taxation of RM62.9 million achieved in 1H2024. Accordingly, the Group's EBITDA (earnings before interest, tax, depreciation and amortisation) for the 2Q2025 stood at RM24.7 million (2Q2024: RM37.4 million), representing a decrease of 23.7%, while the Group's EBITDA for the 1H2025 stood at RM52.0 million (1H2024: RM73.2 million), representing a decrease of 28.9% from corresponding period last year respectively. Basic earnings per share decreased from 2.80 sen in 2Q2024 to 1.63 sen in 2Q2025 and decreased from 5.52 sen in 1H2024 to 3.47 sen in 1H2025.
The performance of the respective operating segments which includes inter-segment transactions for the current quarter as compared to the previous corresponding quarter is analysed as follows:
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Automated test equipment
Revenue from this segment increased by RM13.5 million from RM69.9 million in the previous corresponding quarter to RM83.4 million in 2Q2025, driven primarily by higher project deliveries within the electro-optical and the semiconductor segments. Within the ATE segment, the automotive sector continued to account for the largest share of revenue, contributing approximately 51.2% in 2Q2025. However, revenue from this sector declined slightly by 10.2% as compared to 2Q2024 largely due to timing differences in project deliveries within the automotive industry. Overall, the Group's ATE segment continued to show demand recovery with its comprehensive and wide-ranging test and assembly solutions, with key contributions from customers in Singapore, China, Europe and Japan.
After registering revenue growth in the preceding quarter, the electro-optical industry continued to demonstrate improved momentum by contributing 34.6% to the Group's ATE revenue in 2Q2025, up from 27.5% in 2Q2024, representing an increase of 48.9%. This growth was primarily driven by increased project deliveries and demand for the Group's smart sensor test solutions, particularly those supporting the upgraded versions of ambient light sensors and proximity sensors used in smartphones and wearable devices. Meanwhile, revenue contribution from the semiconductor industry within the ATE segment showed a significant surge by 283.9%, up from 4.4% share of wallet for the ATE segment in 2Q2024 to 14.1% share of wallet in 2Q2025. This growth was mainly driven by the uptick in demand for the Group's test handling equipment catering for the semiconductor segment.
Overall, the semiconductor industry is showing signs of recovery following a cyclical downturn in 2023–2024. This rebound is expected to generate positive spillover effects on the broader ATE market in which the Group operates with its diversified test and assembly solutions across different industries. This will bode well for the Group's ATE business segment with the recovery momentum.
Profit before taxation in the ATE segment increased from RM4.2 million in 2Q2024 to RM10.2 million in 2Q2025, mainly attributable to revenue growth as well as margin improvement due to project's economies of scale.
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Factory automation solutions
In 2Q2025, revenue from the FAS segment declined by 42.4% to RM61.3 million as compared to RM106.4 million in 2Q2024. The decrease was primarily due to a 59.5% reduction in project deliveries from the medical segment which had previously contributed a significant 84.1% share of wallet to the FAS segment in 2Q2024 but contracted to 67.1% share of wallet in 2Q2025. The current momentum in the medical segment is starting to moderate and normalise following a period of accelerated expansion in the prior year.
Nonetheless, the impact of the decline was partially offset by stronger contributions from the consumer and industrial products segment which collectively accounted for approximately 14.0% of the FAS revenue in 2Q2025, a notable increase from 6.4% in 2Q2024. In addition, the Group saw initial contributions from a new segment, renewable energy, which made up approximately 7.0% of the FAS segment's revenue in 2Q2025. The electro-optical segment also delivered a meaningful contribution, accounting for about 8.1% of FAS revenue in 2Q2025. Although the FAS segment has been diversifying from its previously concentrated medical portfolio, this transition will require a longer period to materialise given the nature of FAS segment's production cycle time.
Nevertheless, the Group remains committed to diversifying its end-market exposure to reduce dependency on any single sector. This approach will not only support more resilient performance across market cycles but also position the Group's FAS segment to capitalise on emerging opportunities across multiple industries.
In tandem with the lower revenue recorded, the FAS segment reported a lower profit before taxation of RM16.6 million in 2Q2025, representing a 51.0% decrease from RM33.8 million in 2Q2024.
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Smart control solution system
The products and solutions in this segment entail project management, smart building solutions and trading of materials.
In 2Q2025, this segment recorded a minor sales return of RM22,000 from a credit note issued to a customer. This was compared to a revenue of RM89,000 recorded in 2Q2024. This segment posted a loss before taxation of RM92,000 in 2Q2025 mainly attributable to running fixed costs. In comparison, a higher loss before taxation of RM1.0 million was recorded in 2Q2024.
Prospect
The Group remains cautious as it continues to operate in a challenging global environment marked by prolonged macroeconomic uncertainties and trade tensions. In the first half of the year, operating conditions remained difficult as the Group faced margin pressure stemming from elevated input costs and intensified pricing competition. These challenges were compounded by extended customer decisionmaking cycles given the trade tension uncertainties, global supply chain disruptions and the spill-over effects of geopolitical tensions, all of which contributed to delayed project rollouts and impacted operational efficiency.
However, the Group anticipates a comparatively more favourable performance in the second half of the year supported by improvements in order book visibility, particularly from the ATE segment where customers have gradually resumed capital investments in the next-generation test handling and burn-in systems, particularly within the logic and power semiconductor sub-segments. In parallel, the Group's FAS team remains proactive in expanding its customer base and broadening its industry footprint beyond its traditional strongholds. The FAS team continues to intensify efforts to penetrate emerging sectors such as renewable energy, data centers and healthcare automation where rising demand for intelligent, high-precision and flexible automation solutions is being driven by the increased emphasis on precision and output consistency as well as the growing need for traceability and compliance in regulated industries. Additionally, as the trade tariffs imposed by the United States become clearer, manufacturing base positioning with automation is expected to provide positive momentum to the FAS segment.
Following the successful privatisation of PIL with Puga Holdings Limited (“Puga”), a holding company backed by a renowned semiconductor private equity firm, prominent Taiwanese semiconductor companies and global sovereign wealth funds, the Group has begun to unlock strategic advantages from this partnership. Puga's extensive network and investment portfolios within the global technology ecosystem, particularly in Taiwan and the United States, has provided the Group with greater access to new customers, collaborative R&D opportunities and strategic market entry opportunities.
In addition, the Group is actively building its capabilities in advanced packaging technologies, supported by the accelerating growth in artificial intelligence (AI), highperformance computing (HPC) and other data-intensive, high-speed applications. These developments collectively provide a favourable backdrop for the Group's long-term growth trajectory, positioning it well to capitalise on next-generation technology trends in the mid to long term.