KESM Industries Bhd reported a net profit of RM138,000 in the second quarter ended Jan 31, 2024 (2Q24), compared to a net loss of RM720,000 in the same period last year, driven by increased sales in processing automotive chips.

Quarterly revenue climbed 10.32% to RM61.77 million.

The company records a turnaround in its half-year earnings, achieving a net profit of RM1.05 million compared to a net loss of RM2.26 million in the previous year.

The six-month revenue rose 15.21% to RM125.3 million.

KESM's strategic focus on the automotive semiconductor sector contributes to the positive performance, with plans to diversify into non-automotive areas.

The company anticipates increased chip processing demand in data centers and AI applications despite softened demand in the non-automotive sector.

KESM shares closed 8 sen or 1.2% lower at RM6.40, valuing the group at RM275.3 million.

KESM shares closed 1.2% lower at RM6.40, shedding 8 sen today, resulting in a market valuation of RM275.3 million for the company.