SAM Engineering Sees 7% Increase in Net Profit for Q3 2024
The Malaysian-based engineering and equipment company, SAM Engineering & Equipment (M) Bhd, has reported a significant increase in its net profit for the third quarter of 2024. According to the company’s latest financial results, the net profit rose by 7% to RM31.34 million for Q3 2024, compared to RM29.32 million in the same period last year.
Revenue Growth and Lower Finance Costs Drive Profitability
One of the key factors contributing to SAM Engineering’s improved profitability is its higher revenue. The company’s revenue increased by 5% to RM406.87 million in Q3 2024, from RM387.28 million in the previous quarter. This growth in revenue was driven primarily by the aerospace segment, which saw a significant increase in profit contribution.
In addition to revenue growth, SAM Engineering also benefited from lower net finance costs and tax expenses. The company’s net finance costs fell by 47.3% to RM3.66 million in Q3 2024, from RM6.94 million in the same period last year. Similarly, the tax expense decreased by 55.45% to RM4.65 million, compared to RM10.43 million in the previous quarter.
Aerospace and Semiconductor Equipment Industries Remain Challenged
Despite the positive financial results, SAM Engineering’s management remains cautious about the economic outlook for the aerospace and semiconductor equipment industries. The ongoing geopolitical tensions continue to pose a challenge to these industries, with potential impacts on demand and supply chains.
In its latest forecast, SEMI (Semiconductor Equipment and Materials International) anticipates growth in the global sales of semiconductor manufacturing equipment. However, SAM Engineering believes that significant growth will only materialize at higher fab utilization rates. To prepare for future growth, the company is actively engaged with its customers on new product developments.
Quoting SEMI’s Forecasts
According to SEMI’s forecasts, the global sales of semiconductor manufacturing equipment are expected to continue their upward momentum in 2025 and 2026. The forecast projects equipment sales to grow to US$121 billion in 2025 and US$139 billion in 2026.
Conclusion
In conclusion, SAM Engineering & Equipment (M) Bhd’s financial results for Q3 2024 show a significant increase in net profit driven by revenue growth and lower finance costs. Despite the positive outlook, the company remains cautious about the economic challenges facing the aerospace and semiconductor equipment industries. With its focus on new product developments and customer engagement, SAM Engineering is well-positioned to capitalize on future growth opportunities.
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