Globetronics FY18 net profit up 37% despite Q4 decline

Its sensor production volume in the first half was three times higher than the same period last year, driven by higher gesture sensor volumes and contribution from the light sensors.

KUALA LUMPUR: Globetronics Technology Bhd's net profit for the financial year ended Dec 31, 2018 rose at a stronger pace despite a decline in the fourth quarter due to lower volume loadings of certain products especially in December 2018 from certain customers.

Globetronics was cautious about its outlook for the first half of FY19, pointing out that based on the current customers' forecast, it expected performance for the first half of 2019 to reflect the current unfavourable end market environment and the subdued mobile/smartphone demand.

“In addition, macroeconomic and general industry trends do not appear to offer additional support to the consumer market. It is expected that overall business and volume loadings will start to improve in second half of 2019,” it said on Monday.

Globetronics' core businesses are the manufacture, assembly, testing and sales of integrated circuits, chip carrier quartz crystal products, optoelectronic products, LED lighting system, sensors and optical products and technical plating services for the semiconductor and electronics industries.

In FY18, its net profit rose by 37% to RM70.12mil from RM51.18mil a year ago. Its revenue increased by 7.7% to RM327.95mil from RM304.56mil.

The higher revenue and net profit were due to higher sales from the South East Asia segment, which recorded sales increase as compared to the year earlier. 

The main reasons were an overall pick up in volume loadings from certain customers, better utilisation of our operational resources and facilities and forex gain of RM980,000.

However, in Q4 FY18, its net profit fell 12.2% to RM21.98mil from RM25.04mil while revenue fell more sharply by 21.5% to RM82.24mil from RM104.79mil. Earnings per share were 3.29 sen and it proposed a final dividend of three sen.

“The lower revenue and net profit in the current quarter was mainly due to lower volume loadings of certain products especially in December 2018 from certain customers in the group,” it said.

When compared against the third quarter, its revenue fell 6% from RM87.7mil while the net profit fell 7% from RM23.6mil. 

Globetronics said the lower revenue and net profit were mainly due to softer volume loadings from certain customers and an impairment loss on property, plant and equipment of RM3.04mil recognised in the accounts in Q4.