Trek 2000’s net profit slipped 27.6% to just USD550,000 in Q3

Blame it on much higher R&D costs.

Trek 2000 disappointed shareholders after posting a 27.6% decline in attributable profit for the third quarter, mainly due to a jump in R&D costs.

According to RHB Research, Trek 2000 was also impacted by a USD600,000 loss from its subsidiary Racer Group.

“Trek’s FY15 has been fairly disappointing. It has simply gone off track partially due to lower margins from the group’s interactive consumer solutions business segment as well as higher R&D expenses. Going forward, it is likely for such high R&D expenses to continue as the company is currently collaborating with partners on the development and commercialisation of various products within varied spaces,” RHB said.

“In addition, Trek has also not announced any new contract wins or continued orders from Rely/Mattel China or other customers to date,” RHB added.