Categories: BusinessNews

JF Tech’s 2Q net profit halves to RM2.9m

Revenue in the period, meanwhile, was almost flat at RM11m compared to RM11.7m a year ago

JF TECHNOLOGY Bhd’s second-quarter net profit for the period ended Dec 31, 2022 (2Q23), almost halved to RM2.88 million from RM5.52 million a year earlier, mainly attributed to the positive tax charge recognised earlier in the quarter arising from reversal of prior tax provision.

Revenue in the period was almost flat at RM10.95 million compared to RM11.71 million a year before largely due to the slowdown in the semiconductor industry, particularly the consumer electronics segment.

JF Tech engages in the manufacture, packaging, marketing, trading, and distribution of electronic products, components and test probes.

For the six-months period ended Dec 31, 2022, JF Tech’s net profit dropped by 31% to RM7.33 million from RM10.56 million in the previous corresponding period due to changes in product mix.

“Essentially, there was higher contributions from test interface products division and manufacturing in China and these businesses are still gradually gaining traction,” it told the stock exchange yesterday.

Revenue, meanwhile, stayed flat at RM22.54 million against RM23.02 million previously due to the slowdown in the semiconductor industry, particularly the consumer electronics segment.

However, it said, this was partially offset by the growing contribution from its test interface products business and manufacturing facility in Kunshan, China.

Looking ahead, JF Tech MD Datuk Foong Wei Kuong said global uncertainties are anticipated to remain elevated arising from the ongoing macroeconomic issues.

“The semiconductor sector is not spared from these issues and is expected to experience a slowdown in 2023 due to geopolitical uncertainties, high inflation and global economic recession according to the Malaysia Semiconductor Industry Association,” he said in a separate statement.

The global semiconductor industry sales are projected to fall 4.1% in 2023 based on the World Semiconductor Trade Statistics Organisation’s latest industry forecast, he said.

On a brighter note, he said, the demand from the automotive segment is expected to remain on upward trend.

He said the group serves a diverse range of industries including the automotive segment and noted that orders from its automotive customers are growing.

“This enables us to weather through the different cycles of the semiconductor sector and the group is working hard to capitalise on the opportunities from this segment.

“At the same time, the continued maturation of our two growth drivers — test engineering solutions business and China facility — also allow us to continue expanding our business even during such testing times,” he added.

Overall, he said, the group’s long-term outlook remains promising premised upon their highly sustainable and resilient business model and growth drivers.

Simultaneously, he said the group is also mindful of the challenges ahead and will continue to undertake a prudent approach.

“The board expects the financial year 2022’s financial performance of the group to be satisfactory, barring any unforeseen circumstances,” Foong concluded.

JF Tech closed unchanged at 82.5 sen, valuing the company at RM765 million. — TMR


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