Frontkn Latest QR Summary

Here’s a summary of key points from Frontken Corporation Berhad’s (FCB) Q3 2024 financial report:

Financial Highlights:

1. Revenue Growth: Revenue increased by 8% year-on-year for Q3 2024, primarily driven by strong demand in the semiconductor division, especially in Taiwan.

2. Profit After Tax (PAT): PAT rose by 30% to RM 38.88 million in Q3 2024, boosted by a better product mix and robust semiconductor demand.

3. Year-to-Date Growth: For the nine months ending September 2024, revenue grew by 14%, and PAT increased by 19% year-on-year, underpinned by better utilization in Taiwan's facility.

4. Sequential Growth: Compared to Q2 2024, revenue and PAT grew by 7% and 6.6%, respectively, due to contributions from Taiwan and increased demand from Malaysia and Singapore’s oil and gas sectors.

5. Dividend Payments: FCB paid a total dividend of RM 61.5 million for the year-to-date.

Operational Highlights:
Strong Semiconductor Market: Global semiconductor sales were up 20.6% in August 2024, supporting FCB’s optimistic outlook for continued demand growth in its semiconductor division.

Financial Stability: Cash and cash equivalents increased to RM 420.09 million by the end of Q3 2024, and borrowings remain minimal.

⚠️ Conclusion: Based on its strong financial performance, robust cash reserves, and positive outlook for the semiconductor industry, Frontken Corporation Berhad appears to be a promising investment, particularly if semiconductor demand remains strong. However, investors should monitor any potential impact from global geopolitical tensions.