KUALA LUMPUR: NationGate Holdings Bhd recorded a net profit of RM30.05 million in its third quarter (Q3) ended September 30, 2022 buoyed by its networking and telecommunications customer segments.
Revenue for the quarter came in at RM305.17 million.
No comparative figures were available as it was the first interim financial report released by the company in relation to its earnings, in compliance with the listing requirements.
With the latest quarterly earnings, NationGate reported cumulative revenue of RM731.2 million and achieved cumulative net profit of RM63.4 million for the nine month period.
The nine-month profit surpassed the company's previous record high earnings achieved in financial year 2021 (FY21) of RM59.5 million.
Managing director Ooi Eng Leong said its networking and telecommunications customer segments accounted for RM228.0 million and RM511.5 million, representing 74.7 per cent and 70.0 per cent of both its quarterly and cumulative revenues, respectively.
Malaysia remained its largest revenue contributor for its electronics manufacturing services (EMS) activities, contributing 75.9 per cent and 75.0 per cent for the company's current quarter and financial year-to-date revenues, respectively.
"The record performance is testimony to the company's resilient business model and its strong execution and delivery capabilities.
"NationGate is expected to chart lower revenue over the next two quarters (Q422 & Q123) due to cyclicality in the EMS industry.
"However, the company is still on track to achieve its internal revenue and profits targets given the sustained growth in its networking, telecommunications, industrial products and automotive segments for FY22 and FY23," said Ooi.
As at Nov 14, 2022, NationGate has unbilled purchase orders of RM369.5 million which are to be billed upon delivery progressively over the next 12 months.
NationGate plans to utilise RM5.9 million of the proceeds from the Initial Public Offering to expand its EMS service offerings and surface mount technology (SMT) assembly capacity to cope with the rising demand from its existing multinational customers and new customers.
"We intend to ride on our new business collaboration with GoldTek Technology Co. Ltd to further expand our EMS business and product category such as portable and low power consumption Internet of Things (IoT) electronic devices and tap into their global customer base.
"In line with our strategy to expand our EMS business, we will purchase additional machineries and equipment to add four SMT assembly lines for our printed circuit board assembly services.
"These new machineries and equipment are also expected to enhance our EMS efficiency," said Ooi.
As at Nov 14, 2022, NationGate has 31 SMT assembly lines and 131 units of SMT machineries with a monthly production capacity for SMT services of up to 1.3 billion mounting points per month.
Upon completion of the expansion of its SMT assembly lines within 36 months, the company's monthly production capacity is expected to increase by up to 38.4 million mounting points to a maximum of 1.3 billion mounting points per month.
NationGate is slated to be listed on the ACE Market of Bursa Malaysia Securities Bhd on January 12.