Stronger H2 seen for Globetronics

PETALING JAYA: Globetronics Technology Bhd is expected to record a significantly stronger performance in the second half of the year, driven by sensor volume normalisation and added capacity.

This is after the group’s first half core net profit rose 85% year-onyear on higher sensor revenues.

Its sensor production volume in the first half was three times higher than the same period last year, driven by higher gesture sensor volumes and contribution from the light sensors.

“We expect a stronger second half as production volume for its light sensors normalises, to meet demand for its customer’s new product launch in the third quarter, coupled with additional capacity for its gesture sensors, which would be key to the stronger second half,” said Affin Hwang Capital Research.

The research house, which has maintained its “buy” call on the counter, said it remained positive on the group as it positions itself as a niche sensor play.

“Meanwhile, its move into the assembly of automotive laser headlamp modules later this year could further re-rate its valuation multiples,” it said in a report.

For its second quarter ended June 30, the outsourced semiconductor assembly and test provider saw net profit rising 32% to RM9.34mil from RM7.06mil in the previous corresponding period.

The higher earnings were mainly due to higher volume loading of products and a foreign exchange (forex) gain of RM710,000 during the quarter, compared with a forex loss of RM1mil a year earlier.

UOB Kay Hian Research noted that Globetronics’ direct sensor client has revealed that it expected strong revenue growth, driven by a high volume ramp-up for consumer optical sensors.