Globetronics 1Q profit up 21.6% on higher volume loadings, declares 13 sen dividend

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KUALA LUMPUR (Apr 28): Globetronics Technology Bhd (Globetronics) registered a net profit jump of 21.6% in the first quarter ended Mar 31, 2015 (1Q15) to RM17.15 million from RM14.1 million a year ago, on higher volume loadings from its customers.

In a filing to Bursa today, the semiconductor-based products manufacturer also attributed the improved results to better economy of scale from the productivity improvement or cost control programme that was undertaken by the company.

“The Malaysia and Singapore segments recorded healthy sales and net profit improvement as compared to the last corresponding period,” it noted. Revenue for 1QFY15 grew 6.3% on-year to RM88.7 million from RM83.4 million.

The healthier numbers give Globetronics (fundamental: 3; valuation: 1.7) a basic earnings per share of 6.1 sen for the quarter under review. It has also declared a dividend of 13 sen for 1Q15.

“Moving forward, the group will continue to focus on escalating up the value chain and riding on the research and development initiatives in new products’ design and development.

“The group will also continue to step up efforts in improving the efficiency and cost reduction measures in its operations to achieve the necessary competitive edge in the market,” it said.

Globetronics’ share price has been climbing steadily in the last three months. It reached a 52-week high of RM6.19 on April 24, 2014.

Today, its share price closed at RM6.09, giving it a market capitalisation of RM1.71 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)