JF Technology Berhad announced its second quarter (2QFY22) and first half financial results today for the period ended 31 December 2021 (1HFY22).
The manufacturer of high-performance test contacting solutions for global integrated circuit (IC) maker recorded 1HFY22 revenue up 24.4% year-on-year to RM23.0 million as compared to RM18.5 million in the previous year corresponding period.
The double-digit improvement was chiefly attributed to continued robust demand from customers for high performance
test contactors, encouraging sales from the fairly new test engineering solutions business, JF TestSense, as well as maiden contribution from the Group’s new manufacturing facility in Kunshan, China.
JF Tech’s net profit surged 31.7% YoY to RM10.6 million versus RM8.0 million in 1HFY21. This was largely driven by stronger sales as well as reversal of prior tax provision.
While quarterly revenue is recorded at RM11.7 million, which represents a jump of 25.0% YoY from RM9.4 million in the previous year corresponding quarter, which was mainly due to the aforementioned factors.
Notwithstanding the higher revenue, 2QFY22 profit before tax (PBT) stood at RM2.6 million versus RM4.1 million a year ago. The decline was largely due to higher operating expenses in relation to the new manufacturing facility in Kunshan, China and JF TestSense as well as one-off expenses for the proposed transfer of listing to the Main Market of Bursa Securities. The plant in China has only commenced operations in 4th quarter of 2021 and hence, it was still in the gestation period with utilization rate pick up gradually. Meanwhile, headcount for JF TestSense increased in preparation for more sales activities and incoming new jobs.
The Group’s net profit for the quarter under review soared 37.6% YoY to an all-time high of RM5.5 million from RM4.0 million in the previous year corresponding quarter. The record quarterly net profit primarily stemmed from reversal of prior tax provision.
The Board has declared an interim dividend of 0.5 sen per share for the quarter under review. On balance sheet strength, the Group continues to be in a net cash position, with net cash per share of 9.7 sen as at end-December 2021, backed by net assets of 13.9 sen per share.
“We are delighted to have kept up the healthy earnings growth momentum and it is noteworthy to highlight that this is the 8th successive quarter of revenue growth since 2QFY20. Moving forward, we remain upbeat on the prospects of the Group underpinned by the new growth drivers we have in place coupled with the continued upward trajectory of the global semiconductor industry,” Managing Director of JF Tech, Dato’ Foong Wei Kuong said.