KUALA LUMPUR: Automation system maker MMS Ventures Bhd (MMSV) seeks to expand its original design manufacturing (ODM) business amid anticipation of slow sales in the semiconductor segment this year.
The company said its ODM business showcases its design and development strengths, albeit marketed under global branding.
“We have seen tremendous opportunities in the ODM/original equipment manufacturer (OEM) businesses and we are happy to report that we are currently engaging with a number of customers with the intention to capture their potential business,” chairman Tan Hock Hin said in MMSV’s 2022 annual report released today.
The ODM/OEM segment made up 20.5% of the group’s RM52.87 million revenue for the financial year ended Dec 31, 2022 (FY22).
Tan said the group’s continued efforts to penetrate other industries have shown signs of early success in 2023, and this includes the diversification of its machine platform to capture orders from customers involved in the medical equipment industry.
“The progress and growth in this medical industry will be stable and steady. We have every intention to capitalise on this breakthrough and broaden our business and customer base over time accordingly,” he said.
Tan said MMSV anticipates its smart phone customers to remain with their current generation of products that are 5G-enabled. “With little changes to the existing features of their products, we expect orders from this segment to be slow for 2023,” he added.
In the annual report, MMSV said that in line with the sharp and prolonged downturn in the semiconductor industry, compounded with minimal changes in smart device features, sales from the segment are expected to remain slow in 2023.
Similarly, the company said, demand for both automotive and general lighting is expected to be lacklustre.
“However, the light at the end of the tunnel comes from the gradual pickup in demand from customers of other segments in the second half of 2023 onwards,” it added.
MMSV noted that competitive pressure from both local and overseas players has made business challenging.
“Apart from the equipment makers from our own local market, we also face stiff competition predominantly from Asia and European countries. To remain competitive, we will reinforce our position to sell machines with efficient design without compromising their quality,” the company said.
For FY22, MMSV recorded a 39% jump in revenue to RM52.87 million from RM37.98 million in the preceding year, mainly due to an increase in inspection and testing machines sold. Its net profit rose to RM9.05 million from RM8.25 million previously. – Bernama
