KUALA LUMPUR (Nov 9): Mi Technovation Bhd saw its net profit in the third quarter ended Sept 30, 2023 (3QFY2023) decline by 30.09% to RM14.16 million against RM20.25 million in the same period last year. Earnings per share dipped to 1.58 sen from 2.26 sen.

The Penang-based semiconductor equipment manufacturer said its quarterly earnings were dragged down by a RM3.58 million one-off withholding tax paid in relation to the dividend received from its Taiwanese subsidiary, and lower foreign exchange (forex) gain, it said in a filing to Bursa Malaysia on Thursday (Nov 9).

Quarterly revenue, however, increased marginally by 9.8% to RM98.45 million from RM89.66 million, mainly driven by its semiconductor equipment business unit (SEBU) and semiconductor material business unit (SMBU).

In comparison with the immediate preceding quarter, the group’s net profit dropped 37.72% from RM22.73 million reported in 2QFY2023, while revenue rose 17.13% from RM84.05 million.

For the nine-month period ended on Sept 30, 2023 (9MFY2023), the group’s net profit fell 16.35% to RM43.29 million from RM51.75 million, as revenue dropped 4.77% to RM259.35 million versus RM272.33 million, due to weaker demand from SMBU’s key customers.

Nonetheless, the group said that it managed to conclude its 3QFY2023 earnings with a higher top line, despite the market uncertainty amid the mixed growth and contraction in the global semiconductor market.

“Barring any unforeseen circumstances, we remain aggressively optimistic about the group’s prospects for FY2023 and beyond, with our comprehensive and well-structured corporate roadmaps and leadership,” it said.

Shares in Mi Technovation settled up one sen or 0.56% to RM1.81 on Thursday, giving it a market capitalisation of RM1.63 billion. Since the beginning of the year, the stock has jumped by 40.31%.