Grand Venture’s Q3 profit after tax down 33.4% amid semiconductor slowdown
Add BT as a preferred source
Claudia Chong
DeeperDive is a beta AI feature. Refer to full articles for the facts.
MAINBOARD-LISTED manufacturing-service provider Grand Venture Technology on Tuesday (Nov 8) said its net profit after tax fell 33.4 per cent to S$3.4 million for third quarter ended Sep 30, despite a 3.2 per cent rise in revenue to S$32.9 million.
The company’s gross profit margin decreased from 31.4 per cent to 25.9 per cent amid lower business activity in the back-end semiconductor segment.
Grand Venture was also still absorbing the costs of expanding its capacities for future growth during the quarter. Net profit margin fell from 16.2 per cent to 10.5 per cent.
The company’s Q3 revenue was mainly lifted by a sharp increase in the electronics, aerospace, medical and others segment, but dragged down by a general industry slowdown in the semiconductor segment.
During the nine months to Sep 30, semiconductor revenue fell 6.5 per cent to S$58.4 million on lower demand for the group’s back-end semiconductor services.
Grand Venture noted a slowdown particularly in the memory chips market.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Revenue from the electronics, aerospace, medical and others segment jumped 184.3 per cent to S$27.6 million after robust demand from key customers, and contribution from recent acquisitions including S$6.4 million from the aerospace business.
The life sciences segment recorded a 5.6 per cent increase to S$14 million. The group said it expanded its wallet share from customers in the segment.
It also secured more orders for the production of mass spectrometers and its bolt-on products, and converted more first article inspections to productions.
Grand Venture expects near-term demand in the back-end semiconductor segment to remain volatile. Business activity across its other segments is expected to remain healthy.
“As part of its strategy to ensure sustainability of its business with semiconductor customers, the group is expanding its value chain participation by offering higher-value front-end semiconductor services,” it said.
The counter closed flat at S$0.505 before the announcement.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
