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KESM rises to highest since October 2018 on plans for new factory space

KUALA LUMPUR (Jan 8): Shares in KESM Industries Bhd rose 6.67% in the mid-morning today to their highest level since October 2018 after the firm announced a new investment in factory space of more than 100,000 sq ft in Melaka to support future growth in burning and testing of automotive semiconductors, in anticipation of a business recovery.

At 10.19am, KESM had risen 88 sen to RM14.08, valuing it at RM605.64 million. Trading volume was however thin with 56,000 shares done.

KESM executive chairman and chief executive officer (CEO) Sam Lim yesterday said the reliability of semiconductors for safety of cars will always be the top concern in all new car designs.

“While we have been hard hit by a significant drop in volumes, our balance sheet remains strong. KESM’s cash has strengthened from RM200 million to RM230 million.

“We operate in a highly capitalised market. With our strong financial health, we are taking advantage of this lull period to invest in training, upgrade our equipment and benefit from the growing global automotive industry when the chips are up,” he said.

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