KUALA LUMPUR JF Technology Bhd's net profit increased by 26.7 per cent to RM4.4 million for the first quarter (Q1) ended 30 September 2022 (FY23) versus RM5.0 million in Q1 FY22.
This was mainly due to higher operating expenses incurred with the test engineering solutions and manufacturing facility in Kunshan, China.
Revenue stood at RM11.6 million compared to RM11.3 million a year ago, representing an increase of 2.4 per cent year-on-year (YoY).
The increase was mainly attributed to higher contributions from the test engineering solutions business, the maiden contribution from its test interface products business and the manufacturing facility in Kunshan.
The global semiconductor industry is forecasted to grow by 13.9 per cent in 2022, with growth moderating to 4.6 per cent in 2023, according to the World Semiconductor Trade Statistics.
Nevertheless, Semiconductor Industry Association reiterated that the
long-term market outlook remains strong as semiconductors increasingly become a larger and more important part of the digital economy.
"Against this backdrop, the operating climate remains challenging. Fortunately, our proven, highly sustainable, and resilient business model with recurring and compounding sales of test consumables while serving many industries plays a pivotal role as we navigate challenging times.
There are also pockets of opportunities from the sectors we serve that we can capitalise on to establish our presence further," managing director Datuk Foong Wei Kuong said in a statement.
He said the maturation of JF Tech's two growth drivers – the test engineering solutions business and the China facility – comes at an opportune time as it enables the company to continue growing its business.
"Our test engineering solutions business has a healthy order book with more potential orders in the pipeline.
"More excitingly, our acquisition of the test interface products business has already begun contributing to JF Tech's earnings," Foong said.
The JF Tech board expects FY23 financial performance to be satisfactory, barring any unforeseen circumstances.
Separately, the company has sought regulatory approval for a one-month
extension of time from 1 December 2022 to 31 December 2022 to complete the transfer of listing to the Main Market of Bursa Malaysia.