KESM Industries Berhad : Press Release - KESM Delivers Strong Results

General Announcement for PLC (v13) SUBMITTED

Created by EPSILON ADVISORY SERVICES SDN BHD ­

Reference No. GA1­06032017­00077

COMMON 4 on 06 Mar 2017 at 5:27:22 PM Submitted by EPSILON ADVISORY SERVICES SDN BHD on

09 Mar 2017 at 5:18:33 PM

COMPANY INFORMATION SECTION
Announcement Type	New Announcement Amended Announcement
Company Name	KESM INDUSTRIES BERHAD
Stock Name	KESM
Stock Code	9334
Board	Main Market
Submitting Secretarial Firm	EPSILON ADVISORY SERVICES SDN BHD

CONTACT DETAIL
Contact Person	Designation	Contact No	Email Address
EPSILON ADVISORY SERVICES SDN BHD	012­3885312	[e-mail]
Leong Oi Wah	Secretary	03­78031126	[e-mail]

MAIN
Type	Announcement
Subject	OTHERS
Description	PRESS RELEASE : KESM DELIVERS STRONG RESULTS
Shareholder Approval	No
Announcement Details/Table Section
A copy of the Press Release dated 9 March 2017 is enclosed.
Attachment	No File Name Size 1 KESM­ Press Release ­ KESM Delivers Strong Results.pdf 60.0KB

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Contact: Yvonne Lim KESM Industries Berhad Phone: [phone]

Mobile: [phone]

Fax: [phone]

Lot 4 SS 8/4 Sungei Way Free Industrial Zone 47300 Petaling Jaya Selangor, Darul Ehsan MALAYSIA

KESM INDUSTRIES BERHAD

(Company No: 13022-A)

PressRelease

KESM DELIVERS STRONG RESULTS Improved Bookings From Automotive-Semiconductor Customers

1H FY 17 (31/01/17) RM '000	1H FY 16 (31/01/16) RM '000
Revenue	163,227	140,438
Profit Before Tax	22,774	17,648
Net Profit	19,987	15,065
Earnings Per Share	46.5 sen	35.0 sen

Kuala Lumpur, 9 March 2017: KESM Industries Berhad (Bursa Securities: KESM), the largest independent burn-in and test service provider, today reported its unaudited financial results for the first six months ended 31 January 2017.

Mr. Sam Lim, Executive Chairman & Chief Executive Officer of KESM said, "KESM continued to deliver strong results in the first six months of the new financial year. Revenue increased by 16 percent to RM163.2 million from RM140.4 million in the previous corresponding period of 2016."

Half-year profit before tax increased by 29 percent to RM22.8 million from RM17.6 million as compared to that of the preceding year. Net profit also excelled by RM4.9 million to RM20.0 million from RM15.1 million in the same period of last year.

He said, "The increase in revenue reflected the continuing growth in the semiconductor industry with significant contributions from the automotive, industrial and storage markets."

According to industry leading research firm, the worldwide semiconductor revenue is forecast to total US$364.1 billion in 2017, an increase of 7.2 percent from 2016. This represents an uptick for the industry as the market experienced 1.5 percent growth in 2016.

He added, "KESM work very closely with the top semiconductor manufacturers in these high growth market segments, with key focus on the automotive market. We are uniquely positioned to reap benefits as the global vehicle sales will reach 95 million units this year."

"Moving forward, we see our performance to remain strong, mainly driven by the rising global automotive sales and the increased electronic chip content in making cars safer, cleaner, smarter and more comfortable."

He commented, "Today, our core competencies are in good demand spurring further value-add services to our customers."

He concluded, "KESM is fully committed to developing long term strategic initiatives in our core business."

About KESM Group

KESM is the largest independent burn-in and test service company in Malaysia, specializing in "burn-in" and "test" of integrated circuits. KESM, the first burn-in "service company" to be accredited with ISO 9002 and QS 9000, is fully committed to promoting the highest quality of services to the electronics and semiconductor industries. For more information, please visit: www.kesmi.com

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