KUALA LUMPUR (Oct 25): Globetronics Technology Bhd's net profit for the third quarter ended Sept 30, 2022 (3QFY22) fell 21.4% to RM12.78 million, down from RM16.27 million a year ago, mainly on lower volume loadings from some of the group's customers.

Globetronics, which is an integrated contract manufacturer of semiconductor-based products and services, recognised higher tax expenses of RM2.3 million in 3QFY22, compared with RM900,000 a year earlier.

This, however, was offset by a higher foreign exchange gain of RM3.9 million in 3QFY22, higher than RM900,000 a year before.

Earnings per share dropped to 1.91 sen from 2.43 sen previously, its Bursa Malaysia filing on Tuesday (Oct 25) showed.

Globetronics' quarterly revenue declined 17.3% to RM46.03 million, down from RM55.66 million in the same period a year ago.

For the cumulative nine months ended Sept 30, 2022 (9MFY22), Globetronics' net profit slipped 4.7% to RM33.42 million from RM35.06 million.

Michael Ng Kweng Chong

The group's 9MFY22 revenue reduced by 13.4% to RM136.3 million, down from RM157.46 million in the same period a year earlier, as its Southeast Asia and North America segments recorded sales decreases.

Looking ahead, Globetronics noted the semiconductor industry continues to experience challenging macroeconomic and geopolitical issues resulting in supply chain disruption, uncertain end demand, rising inflation and manpower shortage.

As such, the group has taken measures and shall continue to strive to minimise any potential exposure or disruption 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 the year 2022 amidst the uncertainties ahead," it added.

In a separate bourse filing, Globetronics announced the retirement of its 74-year-old founder Michael Ng Kweng Chong, who has resigned as the group's executive chairman, effective Nov 1.

Succeeding him as executive chairman will be his 46-year-old son Ng Kok Yu, who started his career with Globetronics Sdn Bhd in April 1999 as a corporate planning officer in charge of treasury functions and investment holding companies of the group.

Kok Yu was appointed as the group's corporate director in July 2016, in charge of merger and acquisition opportunities, legal review, as well as handling of investor relations with the investment community.

Meanwhile, Globetronics also announced the appointment of Ng Kok Choon, 56, as a non-independent executive director, effective Nov 1.

Kok Choon is the nephew of Kweng Chong and the cousin of Kok Yu.

Shares of Globetronics finished one sen or 0.95% higher at RM1.06 on Tuesday (Oct 25), bringing the semiconductor-related firm a market capitalisation of RM709.61 million. The counter is currently trading at a historical price-earnings ratio of 13 times.