JEP Holdings 1J4 has reported earnings of $2.1 million for the 2HFY2022 ended Dec 31, 2022, 65.2% lower y-o-y. The earnings plunge was due to the slowdown in the global semiconductor industry during the 4QFY2022, says the group.
FY2022 earnings fell by 3.7% y-o-y to $7.6 million mainly due to foreign exchange (forex) losses arising from a weaker US dollar (USD) during the period.
Revenue for the FY2022 grew by 8.8% y-o-y to $82.6 million as most of the group’s segments saw revenue growth on a y-o-y basis. Only sales in the precision machining segment fell due to lower electronic component sales amid a slow recovery in the aviation sector. During the 2HFY2022, revenue fell by 18.2% y-o-y to $38.0 million as most segments saw revenue decline y-o-y and mitigated by the y-o-y growth in the trading and other segments revenue.
During the year, most of the group’s key markets expanded, with sales in Malaysia leading the growth. China and Canada, on the other hand, saw lower sales y-o-y.
Gross profit for FY2022 increased by 8.7% y-o-y to $16.5 million while gross profit for 2HFY2022 fell by 40.5% y-o-y to $6.6 million.
FY2022 other operating income fell by 62.7% y-o-y to $808,000 due to the lesser grant amount received and forex losses compared to forex gains in the year before.
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FY2022 earnings per share (EPS) stood at 1.832 cents.
As at Dec 31, 2022, cash and bank balances stood at $23.8 million.
No dividend has been declared for the period.
Looking ahead, the group says it expects to see a more noticeable recovery of its aerospace business in the 2HFY2023 due to higher volume production of new complex and high value-added parts from its strategic customers.
However, the near-term outlook on the semiconductor industry is less buoyant with revenue expected to decline.
On its plans, the group says it will proceed with its production expansion plan and optimise its production mix to boost performance. Its new factory in Penang, Malaysia is scheduled for completion in the second half of 2023 which will enable it to take on more customer orders and increase production output.
“Moving forward, the group will continue to maximize operational synergies with UMS to improve overall performance and seek new business opportunities,” says the group.
Shares in Jep Holdings closed flat at 35 cents on Feb 28.
