JF Technology 2Q net profit soars 184% to RM4m, declares 0.5 sen dividend
KUALA LUMPUR (Feb 10): JF Technology Bhd’s net profit for the second quarter ended Dec 31, 2020 (2QFY21) surged 184% year-on-year to RM4.01 million from RM1.41 million, boosted by higher revenue due to sustained robust demand from customers despite the Covid-19 pandemic.
A bourse filing yesterday showed that its revenue climbed 54.19% to RM9.36 million from RM6.07 million previously, on stronger sales and lower operating cost to revenue ratio.
Earnings per share rose to 1.77 sen in 2QFY21 from 0.67 sen a year earlier.
The group also declared a single-tier interim dividend of 0.5 sen to be paid on March 11.
For the cumulative six-month period ended Dec 31, its net profit soared 148.91% to RM8.02 million from RM3.22 million a year ago. Meanwhile, revenue increased 47.9% to RM18.51 million from RM12.51 million previously, driven by higher demand from its customers.
In a statement accompanying the results, JF Technology managing director Datuk Foong Wei Kuong said the group is now able to provide total turnkey test contacting, interfacing and test program engineering services to semiconductor companies globally via its wholly-owned subsidiary JF TestSense Sdn Bhd.
“These value-added services provided to our customers complement JF Technology’s core business of design, development and manufacturing of test contacting products.
“Over in China, the setup of our new manufacturing facility there is advancing nicely and on schedule. To recap, we are partnering with Hubble Technology Investment Co Ltd (HTI), a wholly-owned subsidiary of Huawei Investment & Holding Co Ltd, to design, develop, manufacture and supply high performance test contactors in China. It is envisaged that the facility in China will greatly enhance our footprint and network in China.
“We target the plant to commence operations by 3Q of 2021, and this will add a new income stream to the group,” he said.
He added the group strives to continuously innovate and invest in the creation of intellectual properties, which is one of its key competitive advantages.
“Recently, the group is delighted to be granted a new patent for 5G testing applications. All in all, given the aforementioned factors, we remain upbeat on the prospects of the group despite the challenging environment. Barring any unforeseen circumstances, we expect to achieve a satisfactory performance in the current financial year,” Foong added.
At the time of writing today, shares of JF Technology had fallen two sen or 1.2% to RM1.65, giving it a market capitalisation of RM1.52 billion.
Source: TheEdgeMarkets