August 23, 2021

Formosa Prosonic Shares Show Drastic Rise, Attract Investors!

 Shares of Formosa Prosonic Industries Bhd showed an increase of 13.16% or 37 sen to RM3.18 in Bursa Malaysia's trading session today.

Looking at the movement chart, the shares of the speaker system manufacturer opened 15 sen higher than Thursday's closing level of around RM2.81.

At 12.05pm, the Formosa Prosonic counter was seen still jumping 12.1% or 34 sen to RM3.15 with 6.9 million shares traded.

At RM3.15, the group has a market capitalization of RM779.18 million.

Formosa Prosonic stated that its record net profit growth for the second quarter ended June 30, 2021 increased 174.18% to RM23.19 million from RM8.46 million.

As a result, the company's revenue also doubled to RM233.18 million from RM107.62 million last year.

"Judging by the group's financial position, it remains strong with a net cash position."

"However, there are also obstacles in the supply chain, especially the lack of materials and the increase in material financing that will affect the level of operations," he said.

Based on various factors, the group remains observant of trade receivables collections that are in the normal range of around 60 to 90 days.

While a higher level of inventory is required to support production and delivery needs.