KUALA LUMPUR (Nov 20): Cape EMS Bhd saw its third quarter net profit rise 47.01% to RM15.21 million, from RM10.38 million a year earlier, underpinned by a favourable foreign exchange movement between the US dollar and ringgit.

Earnings per share for the quarter ended Sept 30, 2023 (3QFY2023) increased to 1.65 sen from 1.38 sen, the group's filing with Bursa Malaysia showed.

The electronics manufacturing services (EMS) provider said revenue rose 4.57% to RM135.98 million from RM130.03 million in 3QFY2022, mainly attributed to an increase of sales from its EMS segment.

The group declared a second interim dividend of 0.55 sen per share, to be paid on Feb 2, 2024.

On a quarter-on-quarter basis, the RM15.21 million net profit was slightly than the RM15.16 million registered in 2QFY2023, while revenue edged up 11.66% from RM121.78 million.

For the first nine months of FY2023, Cape EMS’s net profit increased 57.98% to RM38.88 million from RM24.61 million posted in the same period last year.

Nine-month revenue rose 23.57% to RM395.10 million from RM319.75 million.

Moving forward, the group believes that the EMS market holds favourable prospects globally, driven by increasing demand for outsourced manufacturing, technological advancements, market expansion in emerging economies and integration of Industry 4.0 technologies.

“The group continues to monitor the strong demand in the industrial electronic products’ market while also expanding the number of community-based programmes, providing life science services in underserved areas and offering green tech products.

“At this juncture, the order flow from our customers remains strong,” it added.

Shares in Cape EMS closed one sen or 0.91% lower at RM1.09 on Monday, giving the group a market capitalisation of RM1.01 billion. Since the beginning of the year, the stock has fallen by 27.33%.