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Keep on losing on the 4 consecutive QR while under the new plant manager for the past one year. Before that it still strong.. Let's see whether this coming quarter will be the 5th QR loss.
KESM Industries Berhad is principally engaged in burn-in and testing services for the semiconductor industry. It is recognized as the world's largest independent burn-in and test service provider, primarily serving global semiconductor manufacturers.
However, KESM’s revenue declined 20 % from 2019 to 2024. According to the company, the revenue decline was not due to market loss or obsolescence, but rather a strategic pivot into higher-value segments (EV and AI), hindered by macroeconomic disruptions and long product development cycles.
But the turnaround signs in 2024 suggest that the business may be at an inflection point.
• Revenue rose 6 % in 2024 compared to that in 2023. This marks the first year-on-year growth since 2021.
• After a net loss in 2023, KESM recorded a modest net profit of RM0.2 million in 2024.
• KESM noted improvements in the automotive semiconductor demand, especially for EV applications
• The company is seeing rising orders for advanced power management chips used in AI systems, a new but rapidly growing vertical.
In short, 2024 marked a bottoming out and a pivot toward recovery. While the profit was still minimal, the operational and strategic indicators point to early-stage momentum that could accelerate if EV and AI testing volumes continue to grow.
In a shocking turn of events, KESM, the world’s largest independent provider of burn-in and test services for integrated circuits, has encountered severe financial turbulence.
Once a revenue heavyweight, the company’s earnings plummeted since 2018, primarily due to global supply chain disruptions and geopolitical tensions.
Despite holding a robust cash reserve of RM 247 million, its capital allocation strategies have raised eyebrows, as most cash flow is funneled into capital expenditures rather than returned to shareholders.
i think u need to count in the very high possibility they would waste the cash on wasteful capex. net cash per share is 4 bucks. but fair value of net cash after counting in possibility of wasteful capex is maybe only 2 or 3 bucks.
