Globetronics Technology Bhd reports decline in financials, Semiconductor industry underperforms in Malaysia

Globetronics Technology Bhd (KLSE:GTRONIC) announced its full-year 2023 financial results, revealing a significant decline in revenue of 27% to RM131.8m from the previous year. The net income also decreased by 42% to RM26.4m, with a profit margin of 20%, down from 25% in the previous year. The decline in margin was attributed to lower revenue, resulting in an EPS of RM0.039, down from RM0.068 in the previous year.

Despite the decline in revenue, Globetronics Technology Bhd’s EPS exceeded analyst expectations by 1.3%. However, revenue fell short of analyst estimates by 14%. Looking ahead, the company is forecasting a 12% annual growth in revenue over the next three years, compared to a 14% growth forecast for the Semiconductor industry in Malaysia.

The Malaysian Semiconductor industry has not been as strong as expected, with Globetronics Technology Bhd’s shares down 7.1% from a week ago. It is important for investors to be aware of this warning sign before making any investment decisions.

Our analysis is based on historical data and analyst forecasts and should not be considered financial advice. We aim to provide unbiased analysis driven by fundamental data and encourage investors to do their own research before making any investment decisions.

In conclusion, Globetronics Technology Bhd’s full-year financial results show that there has been a significant decrease in revenue and net income compared to the previous year due to lower revenue resulting in an EPS of RM0.039 compared to RM0.068 previously.

The company’s shares have fallen significantly since last week due to weak performance of the Malaysian Semiconductor industry.

While Globetronics Technology Bhd’s EPS exceeded analyst expectations by 1.3%, it fell short of analyst estimates by 14%. Investors are encouraged to be aware of this warning sign before making any investment decisions.

Looking ahead, Globetronics Technology Bhd is forecasting a slower growth rate than the Semiconductor industry in Malaysia over the next three years.

Our analysis is based on historical data and analyst forecasts and should not be considered financial advice.

Investors are advised to conduct their own research before making any investment decisions based on our analysis or any other information provided herein.