Frontken's 1H performance driven by robust AI demand
KUALA LUMPUR: Frontken Corp Bhd 's long-term growth trajectory remains supported by artificial intelligence (AI) adoption and other transformative technologies that are expected to drive demand for advanced semiconductor components and high-value services.
In the commentary accompanying its second-quarter results filing with Bursa Malaysia, the group said its semiconductor business in the first half of 2025 (1HFY25) was supported by strong demand from its customers, mainly from continued robust AI and high-performance computing (HPC) related demand.
"Looking ahead, the group remains encouraged about the positive prospects shared by our key customers and we are actively exploring how to better support our customers including increasing our capacities," it said.
The group said it does not anticipate sharp growth in its oil and gas segment, but is cautiously optimistic that order volume will pick up in the second half of 2025.
In 2QFY25, Frontken recorded a net profit of RM33.49mil, which was slightly higher than RM33.33mil in the year-ago quarter. Earnings per share in 2QFY25 was 2.11 sen compared to 2.12 sen in the comparative quarter.
The group reported revenue of RM156.43mil during the quarter, against RM134.93mil in 2QFY24.
The board of directors declared a dividend of two sen per share, with entitlement and payment dates to be announced at a later date.
For the six-month period, Frontken's net profit rose slightly to RM64.56mil from RM63.39mil in the year-ago period, while revenue gained to RM288.99mil in 1HFY25 from RM275.44mil in 1HFY24.
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