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JF Tech accelerating growth via M&A along with its strategic initiatives

KOTA DAMANSARA: JF Technology Berhad, a Main Market-listed innovator and manufacturer of high-performance test contacting and interface solutions for global integrated circuit (IC) makers, has announced its fourth quarter (4QFY25) and full-year results for the financial year ended 30 June 2025 (FY25).

The group closed FY25 with revenue of RM44.8 million, up 7.7% year-on-year (YoY) from RM41.6 million in the previous year, supported by higher sales from China.

Revenue contribution from China rose 19.1% YoY to RM18.8 million compared with RM15.8 million previously. Net profit for the year stood at RM3.6 million against RM5.8 million a year earlier, largely due to a shift in product mix, higher depreciation from its new facility, an increase in share of profit from an associate company, as well as unfavourable foreign exchange movements in earlier quarters.

For the quarter under review, revenue surged 36.8% YoY to RM12.9 million from RM9.4 million in 4QFY24, driven mainly by the maiden contribution from Q3 Probe Pte Ltd (Q3), together with stronger sales in China and its test engineering division. The acquisition of Q3 was completed at the end of May and contributed for only one month.

Net profit for the quarter improved to RM0.9 million from RM0.6 million in the same period last year, supported by the higher top line and a reversal of over-provided deferred tax liabilities.

Group managing director Datuk Foong Wei Kuong said the global business environment remains challenging due to subdued consumer sentiment, inflationary pressures and geopolitical tensions, compounded by the recent tariff measures announced by the United States that impact several trading partners, including Malaysia.

“On a brighter note, global semiconductor sales are expected to sustain their uptrend, with the World Semiconductor Trade Statistics (WSTS) forecasting 11.2% growth to US$700.9 billion in 2025, followed by an 8.5% expansion to US$760.7 billion in 2026. This is underpinned by strong momentum in the logic and memory segments, both projected to record solid double-digit growth supported by demand for AI, cloud infrastructure and advanced consumer electronics,” he said.

Foong added that JF Tech will maintain a cautious stance in navigating the current environment while continuing to execute its six growth drivers and the JF 4.0 Transformation plan.

“We are pleased to share that our sales of test sockets and consumables are gaining steady traction, contributing to recurring revenue. At the same time, we are making good progress on the mergers and acquisitions front, building on the positive momentum following the completion of the Q3 acquisition,” he said.

He stressed that the group’s long-term prospects remain positive, supported by its resilient and sustainable business model anchored on recurring sales of test consumables across a wide range of industries.

“The Board expects FY2026 financial performance to be satisfactory, barring unforeseen circumstances,” he added.

For FY25, the group declared a dividend of 0.25 sen per share, amounting to RM2.3 million. This represents a payout ratio of 62.4% based on FY25 net profit of RM3.7 million.

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