JF Tech post strong revenue, net profits for Q1 driven by robust demand from China | New Straits
KUALA LUMPUR: JF Technology Bhd (JFT) posted revenue of RM9.1 million for the first quarter (1Q) ended 30 September 2020, representing a jump of 42 per cent or RM2.7 million from RM6.4 million a year ago.
The positive earnings are mainly driven by the robust demand from its customers especially from Malaysia and China.
Net profit soared 121.5 per cent yoy or RM2.2 million to RM4 million as compared to RM1.8 million in 1Q FY20.
Apart from stronger sales, the larger-than-proportionate growth in profit was attributed to lower operating cost to revenue ratio.
JFT managing director Datuk Foong Wei Kuong is pleased to have sustained the growth momentum.
"We kicked-off our fiscal year on a strong note with our second consecutive record-breaking quarterly top and bottom-line performance despite the challenging business environment.
"Demand from our customers continued to be robust notwithstanding the Covid-19 pandemic," he said in a statement today.
JFT is a leading innovator and manufacturer of high-performance test contacting solutions for global integrated circuit makers.
"Moving forward, we expect the overall operating environment to remain challenging due to uncertainties brought by the pandemic.
"Nevertheless, there are various opportunities we can capitalize on. We have taken a big leap forward in our expansion plan in China," Foong said.
On 26 October 2020, JFT partnering with Huawei Investment & Holding Co Ltd (HIH) via its wholly-owned subsidiary Hubble Technology Investment Co Ltd (HTI) to design, develop, manufacture and supply high performance test contactors in China.
"This serves as a great springboard for our other growth drivers as well. This will fortify our relationship with HIH as a strategic partner and gain market access to China.
"We will ride on China's large-scale semiconductor localisation plan and capture the tremendous sales and incentives under the Made in China 2025 initiatives," Foong said further.
Foong also noted that the company is anticipating the semiconductor industry to continue to flourish as well.
"Under Joe Biden's administration, we hope the decoupling of US and China supply chain will slow down as it has been
disruptive to the industry.
"All in all, the outlook for the group continues to be positive underpinned by the growth plans we have in place. Barring any unforeseen circumstances, we expect to deliver a satisfactory performance in the current financial year," Foong said.
For the current quarter, local sales recorded a strong double-digit growth of 58.6 per cent or RM1.1 million to RM2.9 million.
Similarly, revenue from China increased 45 per cent or RM0.9 million to RM2.9 million in 1Q FY21.
Collectively, Malaysia and China contributed 63.5 per cent to total revenue with the remainder from United States and the rest of the world.
On balance sheet strength, JFT remains in a net cash position with net cash per share of 27 sen as at end-September 2020, backed by net assets of 39.8 sen per share.