CEO Morning Brief

Coraza Stays in the Red in 1Q Amid Semiconductor Market Downturn

Publish date: Fri, 17 May 2024, 10:25 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (May 16): Engineering support services provider Coraza Integrated Technology Bhd (KL:CORAZA) remained in the red for the third consecutive quarter, posting a net loss of RM1.32 million for the first quarter ended March 31, 2024.

This compares with a net profit of RM1.72 million in the same quarter of the previous year.

In a bourse filing on Thursday, the group attributed the loss to the incurrence of relatively fixed operating overheads supporting ongoing continuous expansion efforts to enhance capability and capacity.

Quarterly revenue declined 30.32% to RM19.75 million from RM28.35 million a year earlier amid the cyclical downturn in the semiconductor market, leading to the deferral of orders from semiconductor customers at various intervals, said Coraza.

Despite the challenging financial performance over three consecutive quarters, the group expressed optimism about its outlook, noting gradual improvements observed in the current quarter.

Coraza said it has redirected its focus to improving manufacturing capabilities, expanding product and service offerings, and strengthening vertically integrated engineering solutions through technological advancements, capacity expansion, and human capital development.

In terms of capacity, Coraza said renovations at its newly acquired plant and construction of a new factory in Nibong Tebal, Penang are in progress. With construction slated to commence in the second quarter of 2024, these initiatives are expected to position the group for growth and enable it to capitalise on the forthcoming semiconductor upcycle.

Shares in Coraza settled four sen or 6.78% lower at 55 sen, valuing the group at RM271.49 million.

Source: TheEdge - 17 May 2024

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