KUALA LUMPUR: MI Technovation Bhd
expects profit after tax (PAT) in the second half of 2024 (2H24) to be “much lower” than in 1H24.
The semiconductor company said the lower profit was due to the strengthening ringgit against the US dollar and the group's plan to allocate an additional RM8.8mil for staff costs.
“Considering the current walking-on-eggs situation of the international operation, the management of Mi Group still maintains a cautious and conservative attitude towards the prospects in 2024,” Mi Technovation said in a filing with Bursa Malaysia.
The group observed that rising trade protectionism, regional military conflicts, riots, inflation, unfair policies, tariffs, and transnational sanctions have led to a slowdown in consumer spending and corporate capital expenditure.
“A full recovery for the semiconductor industry is not only slower than expected to put it more honestly, a full recovery is unlikely to happen in 2024. The growth momentum in AI (Artificial Intelligence) chips may not be sustainable if earnings from AI applications fail to meet expectations or if the novelty against AI cools,” it said.
In the second quarter ended June 30, Mi Technovation’s net profit rose 21.3% to RM27.6mil compared with RM22.7mil achieved in the same quarter last year.
Revenue jumped 51.3% to RM127.2mil against RM84mil last year while earnings per share climbed to 3.09 sen from 2.54 sen a year ago.
In the first six months, the group posted a higher net profit of RM54.4mil on revenue of RM234.3mil.
Mi Technovation declared a first single-tier interim dividend of 2.5 sen per ordinary share, with the book closure and payment dates on Aug 30 and Sept 18 respectively.
