Scomnet reported a RM9.4 million profit after tax (PAT) for the second quarter of 2022 (Q2 2022). This was a 73.82% surge over the RM5.4 million profit recorded in the same quarter of 2021.

Its revenue rose 21.71% to RM39.86 million, up from RM32.75 million posted in the previous corresponding quarter.

Scomnet attributed the increase in revenue to the higher demand in its automotive, medical and industrial segments.

In a filing with Bursa Malaysia today, Scomnet said its PAT margin grew from 16.51% in Q2 2021 to 23.59% in Q2 2022.

On a quarter-on-quarter (q-o-q) basis, revenue rose 10.81% from RM35.97 million to RM39.86 million on the back of higher sales from the industrial and automotive segments.

This led to a 26.99% increase in PAT to RM9.4 million in Q2 from RM7.4 million in Q1. This increase has been attributed to an improvement in the sale of higher profit margin products and a more favourable exchange rate.

Scomnet said that for the quarter under review, the medical segment continued to be the critical growth driver, having contributed 61% of the revenue.

The automotive segment came in with a 10% contribution, up from 5% in the previous corresponding period, while the industrial segment had a 29% contribution, compared with 26% previously.

Managing director James Shiue said that while the medical segment was a key contributor to profits, Scomnet is also seeing a lot of demand and orders for the automotive segment.

“In the coming quarters, we expect revenue from the automotive segment to catch up with that of the medical segment,” he said. “However, profits will still largely come from the medical segment.”

The group’s first half (H1) revenue for FY2022 grew 7.84% from RM70.32 million to RM75.83 million while PAT surged 63.26% to RM16.8 million from RM10.29 million in the previous corresponding period.

Shiue said the medical segment would continue to be the key growth driver for revenue, followed by the automotive segment.