Frontken Berhad Annual Report 2018

13 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2018 Financial Review RESULTS OF OPERATIONS in RM’000 REVENUE EBITDA 2017 296,580 10% 2017 65,550 43% 2018 327,218 2018 93,484 NET PROFIT EBITDA MARGIN as a % of revenue 2017 29,858 75% 2017 22.1 7% 2018 52,257 2018 28.6 REVENUE The revenue for the Group for the financial year ended 31 December 2018 (“FYE2018”) was RM327.2 million against RM296.6 million in the previous financial year. Overall, the Group revenue increased by RM30.6 million or 10.3% compared to the preceding financial year mainly due to the positive growth of the semiconductor business. REVENUE (by customer location) 2018 RM’000 % 2017 RM’000 % % change in revenue Taiwan 182,886 56 168,479 57 9 Singapore 54,262 17 46,616 16 16 Malaysia 58,714 18 51,054 17 15 Philippines 17,185 5 17,462 6 -2 Others 14,171 4 12,969 4 9 Total 327,218 100 296,580 100 10 An analysis of revenue by customer location showed growth in our business particularly in Singapore, Malaysia and Taiwan. Slowdown in our customers’ business in solar industry resulted in a drop of business in the Philippines. The revenue in Taiwan increased from RM168.5 million to RM182.9 million in FYE2018 or a 9% increase compared to the preceding financial year. Our subsidiary in Taiwan continue to enjoy better business performance due to the positive growth of the semiconductor business. The better performance for our subsidiaries in Malaysia and Singapore was attributable to the growth in semiconductor related business with strong support from its customers and improvement in engineering business. EARNINGS Earnings before interest, tax, depreciation and amortisation (“EBITDA”) of the Group for FYE2018 increased to RM93.5 million from RM65.6 million the year before. As a percentage of revenue, EBIDTA increased by 7% which was mainly due to higher revenue. The profit after tax increased by 57% to RM57.0 million from RM36.4 million in the previous financial year mainly because of our semiconductor division in Taiwan, Malaysia and Singapore performed better this year and also an improvement in engineering business. The consolidated net profit attributable to shareholders of the Company for FYE 2018 was RM52.3 million, an increase of RM22.4 million or 75% compared to the net profit attributable to shareholders of RM29.9 million for the preceding financial year was mainly due to better performances by our non-wholly owned subsidiary and increase of the Group’s equity interest in the subsidiary in Taiwan in FYE2018. This translated to basic earnings per share in FYE2018 of 4.99 sen compared to basic earnings per share of 2.85 sen in the previous financial year.