MMSV eyes double-digit growth

Monday, 13 March 2017

MMSV eyes double-digit growth

BY DANIEL KHOO

Sia: ‘We are targeting to record double-digit growth for FY17 in both top and bottomline.’

 

Company makes target after rising demand from smartphone makers

PETALING JAYA: MMS Ventures Bhd (MMSV) is targeting a double-digit growth for its earnings and revenue for the current financial year ending Dec 31, 2017 (FY17) after a flattish FY16, thanks to increasing demand from smartphone makers.

Its chief executive officer Sia Teik Keat told StarBiz that there were “more than enough” orders for the first and second quarters so far for FY17.

“We are targeting to record double-digit growth for FY17 in both top and bottomline.

“We see increasing demand from smartphone manufacturers who need to refresh their products,” Sia said.

“We are operating in a highly cyclical industry and it can be quite unpredictable sometimes.

“For now, the smartphone manufacturers in the supply chain are needing to refresh the product space to cater for the newer smartphones that will come out later this year.

“From what I understand it will be a big change from previous models,” he added.

MMSV is a test equipment manufacturer which makes specialised machineries to optically and electrically test LED components that are used in various industries including smartphone manufacturing, automotive and general lighting industry. The smart devices industry constitutes about 50% of MMSV’s total orders.

“In order of volume, the smart devices industry is the biggest contributor to our company followed by the automotive and general lighting segments,” he noted.

“We get this semblance that the first half of the year would be good, from the orders we are receiving now. In the first and second quarter we could record topline growth of up to 20%. The third and fourth quarters are still unknown now,” Sia said.

It has been widely reported that the next iteration of the Apple iPhone would have major significant changes to its exterior and interior hardware modules that could shore up additional demand for the product.

Apple usually has their new product launch in the third quarter of the year.

MMSV recently reported its fourth quarter FY16’s results that saw net profit growing by some 267% to RM2.53mil on the back of revenues growing to RM4.87mil from RM4.52mil a year ago.

For the entire FY16, the company recorded a rather flattish performance, but bottomline still grew slightly to RM9.52mil from RM8.08mil in the previous year.

In the entire FY16, toplines grew slightly to RM35.58mil from RM31.29mil.

Its financial statements attributed the improved profit performance in its fourth quarter to higher gains from other operating income due to the much higher foreign exchange gains as the US dollar strengthened further against the ringgit in the fourth quarter of FY16 compared to the same quarter of the previous year.

Revenue for the fourth quarter also improved as the company was able to secure higher orders from its customers as a result of increase in demand from its client’s end customers.

Commenting on its results, Sia says that if these foreign exchange gains are stripped out, the net foreign exchange gain for last year would constitute to about 10% of total revenue and profit.

“When the ringgit weakened we get a foreign exchange gain from that as 65-70% of our sales are quoted in the US Dollar. We are paid within 60 days of invoicing,” he says.

Moving forward, the company which is now housed in the Ace Market also aims to eventually migrate to the Main Board of Bursa Malaysia.

“This will give us increased exposure to more funds and investor base and it will be a good move for us. We are hoping that the move will happen by the third quarter or by the end of the year with our anticipated growth in revenue and profit,” Sia said.