Globetronics' 3QFY15 net profit up 33.69% despite fall in revenue

by **Cals** Tue 27 Oct 2015, 23:29

Globetronics' 3QFY15 net profit up 33.69% despite fall in revenue

By Meena Lakshana / theedgemarkets.com | October 27, 2015 : 9:46 PM MYT

KUALA LUMPUR (Oct 27): [size=16]Globetronics Technology Bhd ([You must be registered and logged in to see this image.] Valuation: 1.70, Fundamental: 3.00) saw its net profit increase 33.69% year-on-year to RM23.57 million or 7.28 sen per share in the third quarter ended Sept 30, 2015 (3QFY15), from RM17.63 million or 6.31 sen per share, despite a slight fall in revenue.

The company attributed the higher net profit to better product mix and cost control programmes carried out in the group.

In a filing with Bursa Malaysia, Globetronics said revenue decreased 2.59% to RM88.71 million in 3QFY15, from RM91.07 million in the third quarter of financial year 2014 (3QFY14).

For the first nine months of financial year 2015 (9MFY15), the company saw its net profit increase 22.61% to RM60.08 million or 19.76 sen per share, from RM49 million or 17.49 sen per share in 9MFY14; while revenue was flat at RM266.43 million, from RM265.12 million in 9MFY14.

In accompanying notes, the company said a second interim single tier ordinary dividend of 10% per share and a single tier special dividend of 10% per share, totalling RM28.16 million in respect of the financial year ending Dec 31, 2015 (FY15), has been approved and will be paid on Nov 4, 2015.

Globetronics, an integrated OEM, ODM and contract manufacturer of semiconductor-based products, said the higher net profit achieved year-to-date was mainly due to higher volume loadings from some of the group's customers, better economy of scale or product mix, coupled with productivity improvement or cost control programme carried out in the group.

The Singapore and United States segments recorded healthy sales and net profit improvement, as compared to the last corresponding period, the company said.

Globetronics said it will continue to focus on escalating the value chain and riding on research and development (R&D) initiatives in new products’ design and development with key customers.

The group will also continue to step up efforts in improving efficiency and cost reduction measures in its group’s operations, to achieve the necessary competitive edge in the market.

“Premised on the above and barring any unforeseen circumstances, the group remains optimistic of achieving satisfactory performance in FY2015,” the company said.

Globetronics' (fundamental: 3; valuation: 1.7) shares closed 12 sen or 1.93% lower at RM6.11 today, for a market capitalisation of RM1.72 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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