MIDF Research, meanwhile, said Globetronics’ prospects are still solid in the long term, as the group’s expertise in high-tech sensor products could be leveraged onto various applications.
KUALA LUMPUR: Globetronics Technology Bhd
is on track for a strong earnings performance this year, backed by higher volume of light sensors.
The company, which is well-known for its sensors in smartphones, also focuses on quartz crystals, timing devices and light-emitting diode (LED) products.
UOB Kay Hian Research noted that Globetronics is rationalising its lower-margin business and pursuing new programmes with its existing and new customers.
“Further growth could come from new sensor development with multinational companies,” UOBKH Research said in a report yesterday.
MIDF Research, meanwhile, said Globetronics’ prospects are still solid in the long term, as the group’s expertise in high-tech sensor products could be leveraged onto various applications.
“Moving forward, we expect a more consistent earnings growth. This would be mainly supported by the group’s new generation of smart sensors that include light, gesture and motion sensors.
“In addition, a recovery of the automotive market would also be positive for the group’s LED business. All factors considered, we are maintaining our “buy” recommendation for Globetronics with a revised target price of RM1.94 (from RM2).”
Globetronics’ net profit jumped 79% to RM11.19mil in the second quarter ended June 30 (2Q) against RM6.25mil in the same quarter last year. Its revenue was marginally higher at RM47.64mil from RM46.4mil a year ago, while earnings per share rose to 1.67 sen in 2Q versus 0.93 sen previously.
The semiconductor firm said the higher sales and net profit achieved in the current quarter were mainly due to better product mix achieved and a foreign exchange gain of RM1.3mil.
Globetronics also declared a first interim single-tier ordinary dividend of one sen per share and a single-tier special dividend of one sen per share, totalling RM13.4mil in respect of the financial year ending Dec 31, 2022 to depositors who are registered in the record of depositors of the company on July 5.
The dividend was paid on July 20. In the first half to June 30, Globetronics posted a net profit of RM20.64mil, up 9.8% from RM18.79mil last year, while revenue fell to RM90.27mil against RM101.8mil previously.
It said the lower revenue achieved in the current period was mainly due to lower volume loadings from certain customers of the group, offset by higher net profit due to better product mix achieved.
MIDF Research said earnings came in below expectations.
“As first half 2022 earnings missed our estimates, we revise our earnings for financial years 2022 and 2023 downwards by minus 12% to minus 13%.”
UOBKH Research meanwhile said Globetronics’ earnings were within expectations, adding that it is expecting a seasonally stronger third quarter for the company.
“For the third quarter, we gather that the production of light sensors could be inched higher post the softer first half, based on current visibility.
“For gesture sensors, we expect monthly volume loadings to normalise on inventory adjustment.
“As for quartz crystal timing devices, volume loadings are expected to drop further with gradual improvement expected from its LED as well as the laser light businesses,” UOBKH Research said.
