JF Technology Berhad announced its third quarter and nine-month financial with the group reporting revenue of RM33.3 million which was largely similar to the RM33.3 million delivered in 9MFY22 on the back of higher contribution from the test interface products division and manufacturing facility in Kunshan, China but offset by softer demand stemming from the slowdown in the semiconductor industry.
As for profitability, the group posted a profit after tax and non-controlling interest of RM9.8 million vis-à-vis RM13.7 million in the previous year. This was predominantly owing to changes in product mix, one-off expenses related to JF Technology Berhad’s migration to the Main Market of Bursa Malaysia Securities Berhad along with the positive tax charge recognized in the previous year’s corresponding period. With regards to the changes in product mix, there were essentially higher contributions from test interface products division and manufacturing in China where these businesses are still scaling up and have yet to reach optimal profitability.
Commenting on the result, the CEO said within the semiconductor industry, there are pockets of growth coming from multiple subsectors such as the automotive, industrial, internet of things, and military/aerospace. Sales in the automotive chip market alone are anticipated to expand by 14% this year according to Gartner. This is a trend that we are experiencing as well with demand from the automotive segment continuing to trend upwards.
The Group registered a year-on-year revenue growth of 4.2% to RM10.7 million for 3QFY23 from RM10.3 million last year driven by sustained demand. Meanwhile, net profit for the current quarter under review stood at RM2.5 million versus RM3.2 million in 3QFY22. This was chiefly attributed to the aforementioned changes in product mix and one-off expenses related to the listing transfer.
