Memtech profits up 27.5% to $5.37m in Q3

Thanks to improved operational efficiency in its production process.

Memtech profits went up by 27.5% YoY to $5.37m (US$3.95m) in Q3 due to improved operational efficiency brought about by automating its manufacturing processes.

According to its financial statement, revenue contribution from its automotive segment posted the strongest growth at 17.3% YoY to $27.67m (US$20.34m) on the back of higher sales contribution from customers Kostal, Magna, Tesla and Continental. It was followed by industrial and medical segment which grew 11.8% YoY to $4.1m (US$3.01m). 

Its consumer electronics (CE) segment decreased by 8.8% YoY to $23. 27m (US$17.1m) as part of the company’s effort to shift towards production of higher-margin, complex engineering parts. Despite the slight decline, Memtech still considers its CE segment to be of its key earnings drivers due to its ability to secure new contract wins.

Overall revenue dipped slightly by 0.5% YoY to $62.88m (US$46.21m) partly due to slower progress in Tesla production and more selective adoption of CE projects.

Operating income also increased by 87.8% YoY to $1.36m (US$1m) as a result of increased government subsidies for the use of its manufacturing technologies.

“This is just the beginning for us as we position ourselves for the future. We are continuing to make investments in our key growth areas – Automotive and Consumer Electronics. We believe that our ability to value-add with our engineering design capabilities will strengthen our relationship with key customers and translate to an increase in allocation in time to come, “ said executive chairman Chuang Wen Fu.