JF Technology Berhad announced its fourth quarter and full-year financial results today for the period ended 30 June.
JF Tech posted double-digit top- and bottom-line year-on-year (YoY) growth, which culminated in its record-breaking full-year performance. It is also noteworthy to mention that this was the second consecutive year the Group achieved record annual performance. FY22 revenue rose 18.3% YoY to RM45.3 million from RM38.3 million a year ago. This was primarily driven by solid demand from customers for high-performance test contactors.
Additionally, higher sales from the test engineering solutions business and its manufacturing facility in Kunshan, China also contributed to the double-digit growth. The Group’s gross profit margin remained healthy and high at 73% for the financial year under review.
Meanwhile, FY22 profit after tax and non-controlling interest grew 13.8%YoY to an all-time high of RM17.2 million from RM15.2 million in the previous year. This chiefly stemmed from the top-line improvement coupled with the reversal of prior tax provisions.
Managing Director of JF Tech, Dato’ Foong Wei Kuong said, “The Group is delighted to have registered our second consecutive year of best ever revenue and net profit performance, especially against the backdrop of a taxing business operating landscape. Full credit goes to the team at JF Tech for their hard work and unrelenting dedication in achieving this milestone.”
“Moving into the new financial year (“FY23”), we expect the market uncertainties to remain elevated with the demanding business operating conditions to persist. Furthermore, the global semiconductor sales growth is expected to slow down as a result of weaker sales of mobile phones and personal computers according to IT research firm Gartner.”
“Against this backdrop, our proven highly sustainable and resilient business model with recurring and compounding sales of test consumables while serving a multitude of industries is crucial for the Group weather through the headwinds. At the same time, our test engineering solutions business and China facility would also enable the Group to offset the softer semiconductor demand outlook.”
“For our test engineering solutions business, we have many projects ongoing and managed to secure several new customers. The Group is excited with our test interface business given the very encouraging feedback from existing and potential customers. On the other hand, the acquisition of assets and business of Ikeda Technology (M) Sdn. Bhd. (“Ikeda”) was completed in June 2022, which we are also delighted to share that the Group has received new orders from customers.”
“Meanwhile, the production utilization at our facility in China continues to pick up progressively and our team is looking forward to traveling there to step up our sales and marketing efforts in order to scale our business upon further relaxation of the restrictions. Overall, both the test engineering solutions business and our China plant are charting good progress and heading towards the right direction.”
“By and large, we continue to be upbeat on the outlook of JF Tech as we will have more growth drivers coming onstream while being mindful of the challenges ahead. We expect the financial performance of the Group for FY23 to be satisfactory barring any unforeseen circumstances,” Dato’ Foong concluded his comments.
For the quarter under review, JF Tech registered its highest-ever ever quarterly revenue at RM12.0 million as compared to RM10.2 million in the previous year’s corresponding quarter. This was an increase of 17.8% YoY on the back of the aforementioned factors. The Group’s 4QFY22 net profit also improved to RM3.5 million. The top-line growth was not reflected proportionately at the profitability level due to higher operating expenses in relation to the manufacturing facility in Kunshan, China, and the test engineering solutions division.
The Board has declared a final dividend of 0.5 sen per share for the quarter under review, bringing the total dividend for FY22 to RM9.3 million, representing a 53.7% payout based on net profit of RM17.2 million.
