Friday 29 Mar 2024
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KUALA LUMPUR (June 19): JF Technology Bhd shares hit an all-time intra-day high in the morning session today, emerging as the top fifth gainer on Bursa Malaysia.

The ACE Market-listed test sockets manufacturer's shares surged as much as 18% to reach RM2.10 before paring some gains to settle at RM2.03 at the midday break, still up 14.04% or 25 sen, bringing a market capitalisation of RM428.4 million. A total of 4.19 million shares were traded, which was substantially higher than its 200-day average volume of 443,204 shares.

During the cumulative nine months ended March 31, 2020 (9MFY20), JF Tech saw its net profit increase 24% year-on-year (y-o-y) to RM4.92 million, while revenue was up 4% y-o-y to RM18.68 million.

In 3QFY20, the group’s net profit jumped 17 times to RM1.7 million from a low base of RM100,000 in 3QFY19, while revenue rose 31% y-o-y to RM6.17 million.

It is worth noting that the discrepancy is related to the litigation fee with US-based Johnstech International Corp, which amounted to RM1.25 million, concerning a patent infringement action filed on June 20, 2014.

JF Tech group managing director Datuk Foong Wei Kuong told The Edge Malaysia in a recent interview that the group continues to see healthy orders from customers in the smartphone, computing, networking and server segments, which somewhat provide backstop to the decline in orders from automotive customers.

As for its plans to expand its revenue contribution from China, Foong remained optimistic as he said while China continues to grow, it is a relatively large market for many companies.

In FY20, the group's revenue contribution from China was seen to have increased from 31% to 35% — currently the highest among all geographical contributions.

Meanwhile, Foong does not expect the company to be affected by the US-China tensions because it serves customers from around the world, and points out that Malaysia is fortunate to be a friendly party to both the US and China.

“Since we are a friendly country to the US and China, we do not expect any significant impact on our supply and demand but we do not rule out the possibility that there may be some level of disruption to material and equipment supplies going to companies from each side of this trade [war],” he adds.

JF Tech said it is leveraging China’s plan to accelerate their technology plans for vision 2025 or “Made in China 2025”, and look into increasing its revenue contribution from the country.

 

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