business

JF Tech posted stronger 4Q earnings

NST Business

KUALA LUMPUR: JF Technology Bhd (JTB) revenue for the fourth quarter (4Q) FY2O ended 30 June 2020 stood at RM8.1 million, an increase of RM3.0 million or 60.0 per cent from RM5.1 million posted in 4Q FY19.

The jump was also largely attributed to stronger demand from its customers overseas.

Net profit for Q4 net profit rose strongly by 571.3% per cent to RM3.1 million as compared to a loss of RM0.7 million registered in the same period last year.

JTB managing director Datuk Foong Wei Kuong the group has, against all odds, delivered a strong set of results.

"This was achieved notwithstanding the Covid-19 pandemic, the resultant movement control order (MCO) as well the overall

challenging macroeconomic environment.

"This has proven that we are in the right industry with the right skills and as such, we continued to experience strong

demand from our customers for our products despite the economic slowdown," he said in a statement today.

JTB is a leading innovator and manufacturer of high performance test contacting solutions for global integrated circuit makers.

For the full year, JTB posted a turnover of RM26.8 million in FY20, representing an increase of RM3.8 million or 16.5 per cent from RM23.0 million in FY19.

Net profit was at RM8.0 million in FY20, surging RM5.0 million or 165.8 per cent from RM3.0 million in FY19.

The improvement was mainly driven by the robust demand from its customers.

Further, earnings growth was also from lower operating expenses, absence of legal fees incurred in the preceding year, as well as gain in foreign exchange due to the strengthening of US dollar against the ringgit.

Foong said looking ahead, while the current challenging environment is expected to prevail due to uncertainties brought about by the pandemic, the company do see various pockets of opportunities that it can capitalise on.

"The group is upbeat on our prospects underpinned by the exciting growth plans we have in place. We have been planting seeds of growth over the past few years to build a solid foundation for our future.

"We are now ready to embark on our next phase of growth, which is the reinvention of the group," he said.

On balance sheet strength, the group remains in a net cash position, with net cash per share of 6.6 sen as at end-June 2020, backed by net assets of 18.0 sen per share.

Foong said with the introduction of 5G gaining momentum, the company is ready to play a key role in this migration.

"JTB has filed 63 patents in various countries, 16 of which are for 5G testing applications and 7 for automotive test applications.

"We will continue to grow our intellectual property, which is the key differentiator from our competitors.

"We believe with our in-depth technical expertise and proven track record, we bring tremendous value to our customers and strategic partners," Foong said.

For the financial year under review, the board has declared a final dividend of 1.5 sen per share, a 3-fold increase as compared to 0.5 sen per share in FY19.

The entitlement date is 11 September 2020, and will be payable on 25 September 2020.

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