Globetronics 2Q net profit up 79% but warns of challenging outlook ahead

KUALA LUMPUR (July 26): Globetronics Technology Bhd's second quarter ended June 30, 2022 (2QFY22) net profit rose 79% to RM11.19 million from RM6.25 million a year ago, thanks to higher foreign exchange gains, while a better product mix led to slightly higher sales.

In a filing with Bursa Malaysia, Globetronics said revenue was 2.7% higher at RM47.64 million in 2QFY22, from RM46.4 million a year ago.

Earnings per share (EPS) rose to 1.67 sen from 0.93 sen in 2QFY21.

For the first half of this year, net profit was 9.8% higher at RM20.64 million from RM18.79 million in the previous corresponding period, despite an 11% revenue contraction to RM90.27 million from RM101.8 million.

EPS grew to 3.08 sen from 2.81 sen a year ago.

The group said the semiconductor industry continues to experience challenging macroeconomic and geopolitical issues resulting in supply chain disruption, uncertain end demand, rising inflation and manpower shortages.

Globetronics said it has taken measures to minimise any potential exposures or disruptions arising from these challenges.

“The business outlook is challenging with the unpredictable market conditions. The group cautiously expects the financial performance to remain satisfactory for year 2022 amidst the uncertainties ahead,” it said.

Shares of Globetronics, which fell 26% year-to-date, closed unchanged at RM1.18, giving the group a market capitalisation of RM789.94 million.