Oppstar, an integrated circuit (“IC”) design service provider, announced its results for the first quarter of the financial year ending 31 March 2024 (“Q1FYE2024”).
For the quarter under review, Oppstar delivered revenue and profit before tax (“PBT”) of RM15.7 million and RM6.8 million, marking a growth of 8.3% and 1.3% respectively as compared to Q4FYE2023.
The profit after tax and minority interest (“PATAMI”) was RM5.3 million, giving a PATAMI margin of 33.8%. The Q1FYE2024 revenue growth was primarily attributed to the turnkey design services, which itself recorded a 9.0% revenue growth as compared to Q4FYE2023.
This segment accounted for 70.1% of the Group’s total revenue. The PBT margin was impacted by higher staff costs and overseas marketing activities in preparation for future projects.
More recently, Oppstar entered into a memorandum of understanding with Chen Junhua and Shenzhen City Yixin Investment (Limited Partnership).
Together, the parties formed the holding company, Shanghai Longhuixin Integrated Circuit Group Co. Ltd. (“Longhuixin”) which was incorporated in China on 15 August 2023.
Oppstar Chief Executive Officer Ng Meng Thai said, “We are pleased to announce that Oppstar has successfully delivered a robust set of financial numbers to kick start the new financial year in the face of the challenging economic environment. With that said, the Group will not rest on its laurels, as it is actively exploring new business opportunities with current and potential partners in existing and new markets. For instance, as announced recently, we have signed an MOU with our partners and formed Longhuixin.”
“We are also venturing into developing products and licensable intellectual properties which could provide us with recurring income streams. Despite the current softening of the semiconductor industry, we are optimistic that the future demand for IC design remains intact, propelled by the significant investment made by the major industry players. In addition, we have invested into Meta Core Sdn. Bhd., in efforts to bolster our post-silicon validation capabilities. Through this investment, we now own 70% of the company,” he added.
