KUALA LUMPUR (May 9): Outsourced semiconductor assembly and testing (OSAT) player Globetronics Technology Bhd’s (KL:GTRONIC) net profit jumped 73.42% year-on-year for its first quarter ended March 31, 2024 (1QFY2024), thanks to a foreign exchange (forex) gain and higher interest income.

Net profit for 1QFY2024 rose to RM5.72 million from RM3.30 million in the same period last year. It recorded a forex gain of RM1.8 million during the quarter, as opposed to a forex loss of RM65,000 previously, and an interest income of RM1.3 million, versus RM900,000 previously, Globetronics' bourse filing on Thursday showed.

Earnings per share for 1QFY2024 climbed to 0.85 sen from 1QFY2023's 0.49 sen. Revenue, however, slipped 9.74% to RM29.90 million from RM33.13 million in 1QFY2023, dragged by lower volume of products sold to some of its customers.

On a quarter-on-quarter basis, Globetronics’s net profit fell 12.04% from RM6.51 million in 4QFY2023, as revenue dropped 8.14% from RM32.55 million, also mainly due to a lower volume of product loadings from some customers.

On its outlook, the group reiterated that the semiconductor industry will continue to be challenging due to macroeconomic and geopolitical issues. Nonetheless, it said it has taken mitigation measures and will continue to minimise any potential exposures or disruptions arising from these challenges.

“The group is actively engaging with a few potential customers to secure new business going forward," it said, adding that it remains cautiously optimistic and expects to achieve satisfactory financial performance for 2024.

The group previously said it intends to diversify into advanced packaging amid rising demand for this service. Its new venture into advanced packaging is also expected to be a future revenue growth driver as it aims to attain leadership within the segment in this region over the next five years.

Shares in Globetronics settled unchanged at RM1.21 on Thursday, giving the group a market capitalisation of RM816.84 million. The stock has dropped 24.38% since the start of the year.