Globetronics Technology’s 4Q net profit rises 15.97% on higher revenue

Globetronics Technology’s 4Q net profit rises 15.97% on higher revenue
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KUALA LUMPUR (Feb 24): Globetronics Technology Bhd’s net profit for the fourth quarter ended Dec 31, 2020 (4QFY20) rose 15.97% to RM16.86 million from RM14.54 million a year ago on higher revenue.

Its quarterly revenue was also up, growing 7.11% to RM63.15 million, from RM58.96 million a year ago.

The group has declared a second interim single tier ordinary dividend of 1 sen per share and a single tier special dividend of 1.5 sen per share, totalling RM16.7 million in respect of the financial year ended 31 December 2020, that was paid on 3 December 2020.

The group said in its filing with Bursa Malaysia that the higher net profit achieved in the current quarter was mainly due to higher volume loadings achieved from certain of the group's customers.

For the full year ended December 31, 2020, the group’s net profit increased by 13.62% to RM50.8 million from RM44.71 million a year earlier, as its yearly revenue rose 5.18% to RM227.52 million from RM216.32 million a year earlier.

The group said the higher revenue and net profit achieved in the current year were mainly due to higher volume loadings and better economy of scale achieved from certain of the group's customers.

The group noted that based on its customers' recent forecast and guidance, it is optimistic of achieving satisfactory financial performance for FY2021.

“The group’s financial performance may continue to be impacted by the Covid-19 outbreak and the disruption of economic activities arising from continuous changes in the implementation of the Movement Control Order, lockdown or stay at home order depending on the number of infected Covid-19 cases.”

“The group has taken strong initiative to mitigate the exposure and disruption in the supply chain,” it said.

The company manufactures, assembles, tests and sells integrated circuits among other electronic and semiconductor products.

Globetronics Technology fell 3 sen or 0.98% to RM3.04, valuing the group at RM2.1 billion. At RM3.04, the stock is up 30% from its close of RM2.34 a year ago.