Financials
Quarterly Report For The Financial Period Ended 31 March 2025
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Unaudited Condensed Consolidated Statement Of Profit Or Loss And Other comprehensive Income For The Year Ended 31 March 2025
Unaudited Condensed Consolidated Statement Of Financial Position as At 31 March 2025
Review of Performance
The Group recorded a quarterly revenue of RM131.6 million in the 3-month ended 31 March 2025 ("1Q2025") as compared to RM170.8 million registered in the 3-month ended 31 March 2024 ("1Q2024"), representing a decrease of 22.9%.
The Group's revenue was mainly contributed by the ATE and FAS segments, constituting approximately 72.8% and 27.2% respectively of the Group's total revenue in 1Q2025.
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 1Q2025 with a profit before taxation of RM20.6 million (1Q2024: RM30.8 million), representing a decrease of approximately 33.3%, mainly due to lower revenue recorded and changes in the sales mix. The Group's EBITDA (earnings before interest, tax, depreciation and amortisation) for the 1Q2025 stood at RM27.3 million (1Q2024: RM35.9 million), representing a decrease of 23.7%. Basic earnings per share for the period decreased from 2.72 sen in 1Q2024 to 1.84 sen in 1Q2025.
Accordingly, the Group closed its 12M2024 with a profit before taxation of RM105.4 million, representing a decrease of 25.5% from RM141.4 million recorded in 12M2023. The Group's EBITDA (earnings before interest, tax, depreciation and amortisation) for the 4Q2024 stood at RM27.0 million (4Q2023: RM35.8 million), representing a decrease of 24.5%, while the Group's EBITDA for the 12M2024 stood at RM127.0 million (12M2023: RM159.2 million), representing a decrease of 20.2%.
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 RM23.2 million from RM73.2 million in the previous corresponding quarter to RM96.4 million in 1Q2025, mainly driven by higher project deliveries to the automotive, semiconductor and electro-optical segments. Within the ATE segment, the automotive segment continued to represent the largest share of revenue, accounting for approximately 51.9% in 1Q2025 (1Q2024: 60.3%), reflecting a 13.4% increase as compared to 1Q2024. This growth was largely attributed to sustained demand for the Group's front-end and back-end test and assembly solutions from leading global automotive component manufacturers.
The semiconductor industry segment came in as the second largest revenue contributor during the quarter at 26.6% as compared to 13.4% in 1Q2024, representing an increase of 160.2% within the ATE segment. While the broader semiconductor market remains mixed, the Group's exposure to high-performance segments such as advanced ICs, memory and logic products has supported this uptrend. Following a period of industry-wide inventory correction, this quarter saw a gradual recovery in demand for the Group's test handling equipment. As for the Group's electro-optical segment, revenue increased by 8.6% as compared to 1Q2024, contributing an overall 20.9% to the ATE segment in 1Q2025. This growth was primarily driven by continued demand for the Group's flagship smart sensor test solutions, which support ambient light sensors and other next-generation sensors in smartphones and wearable devices.
Overall, while short-term market visibility remains constrained by macroeconomic and geopolitical uncertainties, the Group's ATE segment continues to demonstrate resilience, supported by a diversified customer base across different industry sectors that are aligned with high-growth structural trends such as automotive electrification, advanced semiconductors and smart sensing technologies. With continued investments in next-generation testing platforms, the ATE segment remains well positioned to unlock new growth opportunities and strengthen its competitive edge in key technology-driven markets.
Profit before taxation in the ATE segment increased from RM11.6 million in 1Q2024 to RM24.5 million for 1Q2025, representing a remarkable growth of 110.3% primarily driven by the segment's revenue expansion.
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Factory automation solutions
The Group's FAS segment recorded a 63.2% decline in revenue to RM36.4 million in 1Q2025, down from RM98.8 million in 1Q2024. This decline was primarily attributed to lower project deliveries within the medical segment, which contributed a substantial 80.2% share to the FAS segment in 1Q2024 but contracted to 19.2% in 1Q2025. The shortfall was mainly due to timing differences in project delivery schedules and order conversion cycles by the medical segment customers.
Despite the contraction, the FAS segment received meaningful contributions from other industries, notably the consumer and industrial products and electro-optical sectors, which accounted for approximately 55.2% and 18.9% of the segment's share of revenue respectively in 1Q2025. This reflects the Group's diversification efforts to mitigate reliance on a single sector and broaden its industry exposure.
Looking ahead, the Group expects its FAS segment to gradually regain momentum, supported by a more balanced industry mix and the progressive ramp-up of project deliveries across key sectors. The Group remains committed to expanding its automation portfolio, particularly in the medical, consumer and industrial products and renewable energy segments, where automation adoption is expected to accelerate in response to regulatory demands, technological advancement and reshoring initiatives.
Overall, the FAS segment recorded a lower profit before taxation of RM4.5 million in 1Q2025 as compared to RM23.6 million in 1Q2024, mainly due to lower revenue recorded.
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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 1Q2025, no revenue was recorded under the smart control solution system segment, compared to RM0.5 million in 1Q2024. This segment, however, recorded a profit before taxation of RM56,000 in 1Q2025 due to the gain from the disposal of investment properties. In 1Q2024, this segment recorded a loss before taxation of RM0.6 million.
Prospect
Amid ongoing macroeconomic uncertainty and heightened geopolitical tensions, certain customers of the Group have adopted a cautious, wait-and-see approach in their investment and procurement decisions. This sentiment has led to some degree of deferment in order placements or replenishments, particularly in sectors that are sensitive to capital expenditure cycles. This challenging global trade environment was further exacerbated by the recent tariff measures announced by the United States of America which have intensified global trade tensions. As a result, the Group has experienced a slower-than-expected replenishment of its order book, which may affect the momentum of order conversion in the near term, compounded by the evolving global supply chain strategies of both the global technology companies and the Group itself.
Despite these external challenges, sentiment surrounding current technological advancement trends, particularly those related to automation, high powered semiconductor testing and smart manufacturing remain robust and closely aligned with the Group's core capabilities. The growing demand for high-performance semiconductors, AI-enabling hardware and software as well as electrification in automotive applications continues to drive adoption of the Group's ATE and FAS offerings. At the same time, the Group's strategic investments in advanced packaging, including 2.5D substrate testing and the scaling of its newly completed Campus 3 production facility enabled the Group to position it well to capture emerging opportunities across next-generation electronics, medical automation and intelligent manufacturing environments. In addition, the Group has also continued to adopt multiangled and flexible supply chain strategies in confronting the bipolarisation of global trade across its diversified customer and supplier portfolios. Notably, new opportunities have emerged for the Group to strengthen its role as a strategic automation business partner, especially for multinational manufacturers seeking to relocate, expand, or diversify their operations. This shift is expected to drive continued demand for the Group's automation solutions across key industries.