Strong start for JF Tech with record-breaking quarter
KUALA LUMPUR: Leading innovator and manufacturer of high-performance test contacting solutions for global integrated circuit (IC) makers, JF Technology Bhd (JF Tech) announced its first quarter (1QFY21) financial results for the period ended September 30, 2020.
JF Tech posted yet another best-ever quarterly revenue of RM9.1 million in 1QFY21. This represented a jump of 42 per cent year-on-year (y-o-y) or RM2.7 million from RM6.4 million a year ago. This was mainly driven by the robust demand from its customers especially from Malaysia and China.
The top-line growth was amplified on the group’s profit after tax and non-controlling interest (PATNCI). 1QFY21 net profit soared 121.5 per cent y-o-y or RM2.2 million to a record-breaking RM4 million as compared to RM1.8 million in 1QFY20.
Apart from stronger sales, the larger-than-proportionate growth in profit was attributed to lower operating cost to revenue ratio.
Managing director of JF Tech, Datuk Foong Wei Kuong said, “We are very pleased to have sustained the growth momentum and 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.
“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 capitalise on.
“We have taken a big leap forward in our expansion plan in China. As announced recently on October 26, 2020, JF Tech is partnering with Huawei Investment & Holding Co Ltd (Huawei) 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 Huawei as a strategic partner and gain market access to China. We will ride on China’s large-scale semiconductor localization plan and capture the tremendous sales and incentives under the Made in China 2025 initiatives.
“Globally, we anticipate 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 further added.
For the quarter under review, JF Tech’s local sales recorded a strong double-digit growth of 58.6 per cent y-o-y or RM1.1 million to RM2.9 million.
Similarly, revenue from China increased 45 per cent y-o-y or RM0.9 million to RM2.9 million in 1QFY21.
Collectively, Malaysia and China contributed 63.5 per cent to total revenue with the remainder from US and the rest of the world.
On balance sheet strength, JF Tech 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.