Frontken Berhad Annual Report 2019

13 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 Financial Review RESULTS OF OPERATIONS in RM’000 REVENUE EBITDA 2018 327,218 4% 2018 93,484 23% 2019 339,911 2019 114,835 NET PROFIT EBITDA MARGIN as a % of revenue 2018 52,257 32% 2018 28.6 5% 2019 69,170 2019 33.8 REVENUE The Group revenue for the financial year ended 31 December 2019 (“FYE2019”) was RM339.9 million compared with RM327.2 million recorded in the previous financial year. The Group revenue increased by RM12.7 million or 3.9% compared to the preceding financial year mainly due to positive growth of the Group’s semiconductor and engineering business. REVENUE (by customer location) 2019 RM’000 % 2018 RM’000 % % change in revenue Taiwan 186,018 55 182,886 56 2 Malaysia 65,873 19 58,714 18 12 Singapore 53,866 16 54,262 17 -1 Philippines 15,102 4 17,185 5 -12 Others 19,052 6 14,171 4 34 Total 339,911 100 327,218 100 4 An analysis of revenue by customer location showed growth in our business particularly in Malaysia, Taiwan and China whereas operational issues experienced by customers resulting in some works being requested to be put on hold resulted a drop of business in the Philippines. The revenue in Taiwan increased from RM182.9 million to RM186.0 million in FYE2019 or a 2% increase compared to the preceding financial year. Our subsidiary in Taiwan continues to enjoy better business performance mainly due to customer’s ramp up of production. The better performance for our subsidiaries in Malaysia was due to improvement in engineering business. EARNINGS Earnings before interest, tax, depreciation and amortisation (“EBITDA”) of the Group for FYE2019 increased to RM114.8 million from RM93.5 million or a 23% increase compared to the preceding financial year attributable to higher revenue and continual efforts to improve our efficiency across the Group. The profit after tax increased by 30% to RM74.2 million from RM57.0 million in the previous financial year mainly because of our semiconductor division in Taiwan and Singapore performed better this year and also an improvement in engineering business in Malaysia and Singapore. The consolidated net profit attributable to shareholders of the Company for FYE2019 was RM69.2 million, an increase of RM16.9 million or 32% compared to the net profit attributable to shareholders of RM52.3 million for the preceding financial year. The improvement was mainly due to better performances by our non-wholly owned subsidiaries and the increase of the Group’s equity interest in our Taiwan subsidiary in FYE2019. This translated to basic earnings per share in FYE2019 of 6.60 sen compared to basic earnings per share of 4.99 sen in the previous financial year.

RkJQdWJsaXNoZXIy NDgzMzc=