KUALA LUMPUR (Aug 29): SKP Resources Bhd announced today a 28.4% drop in net profit to RM18.49 million or 1.48 sen per share in its first quarter ended June 30, 2019, from RM25.83 million or 2.07 sen per share in the year-ago first quarter.

Revenue contracted 15.8% to RM362.55 million from RM430.52 million, due to lower revenue recorded from existing key customers as well as different product mix, SKP said in an exchange filing today.

Despite a weak start, SKP expects to achieve profit growth for the financial year ending March 31, 2020 as prospects remain good.

It explained that despite the challenges in the global market as a result of trade tensions, business sentiment of most of the group's customers remain positive.

"The group is strategically well positioned in the electronics manufacturing services (EMS) industry and continue to pursue opportunities to grow its market share from existing customers. We will continue to expand our printed circuit board assembly (PCBA), injection moulding and engineering capabilities to take advantage of a widened product portfolio.

"The group remains driven to achieve profitable growth, focusing on the continuous pursuit of operational excellence," read its filing.

SKP's share price fell two sen or 1.8% to close at RM1.09 today, bringing a market capitalisation of RM1.36 billion. The stock has lost about 17% of its value over the past two months.