SAM Engineering & Equipment (M) Bhd's share price saw a decline at the opening of the market today despite recording a better second quarter net profit.
Entering the midday break, SAM Engineering's share price fell by 11.04% to RM14.34 after reaching RM16.12 at the close of Bursa yesterday.
Judging by the valuation, the group's share price has already jumped more than 120% from the RM7.35 level reached on January 4, 2021.
After that, it continued to record the highest share since its listing on Bursa Malaysia to reach RM16.24 on 24 August 2021.
But unlike the others, SAM Engineering's share price began to decline from its highest level after the company announced its financial performance in the second quarter.
The decline is likely to occur due to investors engaging in profit taking activities.
The company's net profit increased 66.22% to RM11.98 million from RM7.21 million in the same period last year.
As for the company's revenue, it was also seen to jump by 18.6% to RM202.78 million compared to the previous around RM170.98 million.
In terms of prospects, the group says that there is a global semiconductor chip shortage that is likely to continue until the end of 2023.
SAM Engineering also said it would invest in new machines and spaces to meet the growing demand for the product.
In addition, it is seen expanding its manufacturing operations in Thailand where a plant has been secured and is expected to start mass production in December.
