Grand Venture Technology Q1 earnings up 5 times

CATALIST-LISTED manufacturing-service provider Grand Venture Technology on Monday posted a first-quarter net profit after tax of S$3.3 million - five times higher than the figure in the preceding year.

This was due to a 59 per cent rise in revenue to S$23 million, growing wallet share from its key customers as well as stronger gross profit margins, said the group in a business update.

Gross profit margin stood at 32.1 per cent versus 22.9 per cent in the preceding year, due to improved capacity utilisation with operations starting to normalise after initial Covid-19 disruptions.

The group recorded revenue growth across all its business segments, most significantly in the semiconductor segment, which registered a 68.5 per cent increase to S$16.3 million. The segment's s contribution to the group's revenue expanded to 70.6 per cent in the first quarter, compared with 66.6 per cent for the same period last year.

Growth in the semiconductor segment was mainly attributable to global ramp-up in demand for semiconductor chips, in line with the macro demand for digitalisation, electronics, data, 5G, electric vehicles, artificial intelligence and the Internet of Things.

Revenue for life sciences was up 38.4 per cent to S$3.8 million, while the electronics, medical and others segment grew 42.2 per cent to S$3 million.

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The group said that growth in the life-sciences segment was mainly driven by increased mass production of mass spectrometers; improvement in the electronics, medical and others segment can be attributed to higher demand for electronics and the group's increased penetration into the medical sector.

The firm added that it remains committed to maximising shareholder value via the deployment of resources towards strategic growth in the areas of engineering know-how, competencies and operational capabilities, and strengthening of financial resources to scale up.

The group will also continue to pour resources into the research and development of advanced manufacturing techniques, including mechatronics, and advanced materials such as quartz and ceramics so as to enhance the product and services offerings to the customers.

Shares of Grand Venture Tech ended Monday at 64.5 Singapore cents, up 5.5 cents or 9.3 per cent.