KUALA LUMPUR: KESM Industries Bhd
's is expected to see an improved utilisation rate for its automotive business following the certification of new test platforms for its customers.
Kenanga Research reported that KESM has completed RM145mil capex for new burn-in and test equipment, which are currently undergoing qualification.
These new test platforms will handle updated chips related to advanced driver-assistance system (ADAS) and tyre pressure monitoring system (TPMS) for electric vehicles.
According to Kenanga, KESM expects the utilisation rate to trend upwards to 705% in 2024 from the current 50-55% in 2QFY23.
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