JF Tech records revenue of RM11.6 million for 1QFY23
KUCHING: JF Technology Berhad (JF Tech) has recorded a revenue of RM11.6 million for the first quarter of the period ended September 30, 2022 (1QFY23), compared to RM11.3 million a year ago, which represented an increase of 2.4 per cent year-onyear (y-o-y).
The increase was mainly attributed to higher contributions from the test engineering solutions, maiden contribution from its test interface products business and manufacturing facility in Kunshan, China.
However, the top-line improvement was not reflected on the profit after tax and noncontrolling interest (PATNCI) level.
1QFY23 net profit stood at RM4.4 million versus RM5 million in the previous year corresponding quarter.
This was largely due to higher operating expenses incurred in relation to the test engineering solutions and manufacturing facility in Kunshan, China.
“We are heartened to start the new fiscal year with a commendable set of results notwithstanding the challenging macro-environment that includes inflationary pressure, rising interest rates and recession fears,” JF Tech managing director Datuk Foong Wei Kuong said.
The global semiconductor is forecasted to grow by 13.9 per cent in 2022 with growth moderating to 4.6 per cent in 2023 according to the World Semiconductor Trade Statistics.
Nevertheless, Semiconductor Industry Association reiterated that the long-term market outlook remains strong as semiconductors are increasingly becoming a larger and more important part of the digital economy.
“Against this backdrop, the operating climate remains challenging. Fortunately, our proven highly sustainable and resilient business model with recurring and compounding sales of test consumables while serving a multitude of industries plays a pivotal role as we navigate through the testing times.
“There are also pockets of opportunities from the sectors we serve that we can capitalise on to further establish our presence.
“Meanwhile, the maturation of our two growth drivers - test engineering solutions business and China facility - comes at an opportune time as it enables us to continue growing our business.
“Our test engineering solutions business has a healthy order book with more potential orders in the pipeline.
“At the same time, the team is continuously innovating to develop cutting edge solutions and expanding our product lines.
“More excitingly, our acquisition of the test interface products business, has already begun to bear fruit and started contributing to the group’s earnings.”
Over in China, the utilisation rate at our facility has recorded improvement and is projected to gain further traction going into FY23.
It continues to work closely with its business partner to develop next generation outperforming products.
The group opines that its long-term prospects remain bright with more growth drivers maturing and coming onstream, while cognisant of the prevailing challenges and shall continue to exercise prudence.