Its has been rock solid year for JF Tech which is riding on the high demands in the chip manufacturing industry, the maker of high-performance test contacting solutions for global integrated circuit (“IC”) makers, posted its highest-ever revenue of RM38.3 million for 2021.
This was an increase of 42.9% year-on-year from RM26.8 million a year ago attributing the strong double-digit improvement mainly driven by robust demand from its customers. Revenue from Malaysia and China rose 76.7% and 25.6% YoY to RM11.7 million and RM11.6 million respectively for the year under review. This was also the first time the aggregate contribution from both two countries exceeded RM11 million-mark. Sales to Philippines and the United States also experienced strong growth, having soared 111.6% YoY and 35.3% YoY to RM5.3 million and RM3.9 million respectively. In addition to top line growth, JF Tech’s FY21 gross profit (“GP”) margin too expanded to 77.6% against 73.3% in FY20.
Parallel with the record-breaking revenue, JF Tech’s FY21 profit after tax and non-controlling interest (“PATNCI” or “net profit”) surged to an all-time high of RM15.2 million versus RM8.0 million a year ago. The larger-than-proportionate growth of 89.0% YoY was chiefly attributed to lower operating cost to revenue ratio in addition to stronger sales and higher GP margin.
Meanwhile, on quarterly basis, this is the 6th consecutive quarter of revenue growth since 2QFY20, a commendable feat. To sustain growth, its JF TestSense has made very good progress and expect this to start contributing to its earnings in FY22. Also the new manufacturing facility in Kunshan China is progressing well and on track to commence production in early 4th quarter of 2021.
The group recently became the world’s one-stop shop for test contacting solutions following the recent partnership with ISC Co., Ltd a leading global test solution provider. This will enable the company to have four major test socket offerings under one roof to offer complete range of solutions to its customers.
Following the latest announcement on the workforce, JF Tech will ramp up production to full capacity in the next few weeks from the current 60% cap in accordance with the stipulated full vaccination rate of staff.