KUALA LUMPUR: Main market-listed leading innovator and manufacturer of high-performance test contacting solutions for global integrated circuit (IC) makers, JF Technology Bhd (JFT) posted revenue of RM10.9 million for the second quarter (Q2) ended December 31, 2023 (FY24) from RM11.0 million posted in the same quarter last year.
Contribution from China rose 73.2 per cent year-on-year (YoY) to RM5.6 million for Q2 FY24 from RM3.2 million a year ago.
Following the aforementioned change in the product mix contribution of the company, net profit came in lower at RM1.3 million compared to RM2.9 million posted in Q2 FY23.
Managing director Datuk Foong Wei Kuong said looking ahead, the global semiconductor industry is anticipated to expand by 13.1 per cent to US$588.4 billion based on the latest estimates by the Semiconductor Industry Association (SIA) and World Semiconductor Trade Statistics (WSTS).
“This double-digit rebound is certainly good news for the sector including the JFT, especially after a challenging year for all semiconductors players in 2023.
“The exciting industry outlook bodes well for the company as we are ready to ride on this recovery.
“Our new test contacting centre of excellence in Kota Damansara provides us with ample space and capacity to seize these opportunities.
“On the other hand, JFT’s facility in China continues to chart good progress with healthy utilisation and rising demand. More excitingly, our footage in China has brought more possibilities for the company,” Foong said in a statement.
For the first half of FY24, JFT reported a revenue of RM21.6 million, slightly lower than the RM22.5 million achieved a year ago.
The contributions from the test interface products division and manufacturing facility in Kunshan, China, have allowed the company to offset the persisting slowdown in the semiconductor industry, impacting the demand for its test contacting sockets.
Meanwhile, 1H FY24 net profit net profit stood at RM4.3 million compared to RM7.3 million in the previous year’s corresponding period.
This was due to the company’s change in product mix contribution as these businesses are still advancing towards their optimal level.
JFT had established a joint venture (JV) company in Malaysia with Shenzhen HFC Co Ltd to design and manufacture electromagnetic interference (EMI) shielding materials, thermal interface materials, and absorbing materials.
Shenzhen HFC specialises in integrated research and development (R&D), manufacturing and sale of EMI shielding materials, thermal interface materials, wave-absorbing materials and ferrite.
It presently serves a diverse range of industries and applications, including artificial intelligence (AI), semiconductors, smartphones, electric vehicles (EV), telecommunications as well as electronics manufacturing services (EMS).
“We are delighted to share that the JV has progressed well, with machine installation commencing soon, followed by production.
“JFT is excited by the synergies and potential from this arrangement, which is also part of our JF 4.0 transformation.
“This latest phase aims to move JFT and Malaysia further up the semiconductor value chain.
“We will be harnessing our resilient and sustainable business model with recurring and compounding sales of test consumables across diverse industries, while at the same time seeking more collaborations with high-value and niche high-tech companies,” he said.
“On balance, the long-term outlook of JFT is bright, and the board expects the FY24 financial performance to be satisfactory, barring any unforeseen circumstances,” Foong said.
