Globetronics to see softer second quarter

GTB’s power lighting products have thus far seen slight improvements in volume loading and are still expected to be one of the group’s key focus for current financial year.

KUALA LUMPUR: Globetronics Technology Bhd’s (GTB) key sensor segment is expected to see overall soft volume loadings for the second quarter ending June 30,2021 as light sensor volumes are expected to decline by 15% at around 21 million units monthly, while gesture sensor volumes are also expected to fall to 27 million units.

A report by AmInvestment Bank Research, after a conference call by GTB management, added that volumes for its motion sensor products and quartz crystal timing devices (QCTD) are expected to remain stable.

Meanwhile, GTB’s power lighting products have thus far seen slight improvements in volume loading and are still expected to be one of the group’s key focus for current financial year.

“Note that volume loadings for GTB’s sensor segment will be seasonally stronger in the second half of the year, ” said the research unit.

Key updates from GTB’s conference call also include that mass production of GTB’s next generation light and gesture sensors are set for June and July 2021 respectively, while production of its bio/environment sensor will begin in June or July 2021.

It also noted that new projects under development are ongoing while supply constraints relating to the global semiconductor shortage are manageable with negligible impact to group margins.

Additionally, the group’s expansion of its factory space by 30% (30,000 sq ft) in Penang is ongoing with targeted completion in August or September 2021.

Meanwhile, GTB continues to co-develop new generation sensors with its key Austrian customer and develop new key programmes with other customers.

However, progress of the latter has been hampered by Covid-19-related border closures.

The group continues to make progress for the qualification of additional power lighting products.

AmInvestment Bank Research also noted that GTB’s Q1 core profit of RM11mil rose 16% year-on-year due to higher volume loadings for smart sensors and QCTD which led to better economies of scale.

Meanwhile, on a quarter-on-quarter basis, core profit fell by 31% on lower volume loadings leading to smaller economies of scale mainly due to seasonality of sensor product volumes.