Its semiconductor segment contributes the most to Q1 revenue

 

[SINGAPORE] Manufacturing-service provider Grand Venture Technology (GVT) on Tuesday (Jun 3) posted a first-quarter net profit after tax of S$2.6 million for the three months ended Mar 31, up 27.7 per cent from S$2 million a year ago.

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) grew as well, by 29 per cent to S$8.4 million, from S$6.5 million previously, said the company in a business update.

 

Revenue for the first-quarter period rose 44.8 per cent to S$44.6 million, from S$30.8 million in the year-ago period.

 

These improvements were driven by continued &ldquo wallet share expansion&rdquo with the company&rsquo s key customers, it said in the bourse filing. Wallet share refers to the amount a customer spends regularly on one brand, over buying from a competitor.

 

By segment, revenue from the company&rsquo s semiconductor business rose 57.3 per cent to S$25.6 million for the quarter, compared to S$15.7 million in the previous corresponding period.

 

The robust growth was driven by higher year-on-year demand for the company&rsquo s test equipment-related products, including high bandwidth memory testers.

 

The company&rsquo s front-end semiconductor customers also made &ldquo progressive contributions&rdquo , which contributed to its expanded revenue base.

 

The revenue of its life sciences segment grew by 28 per cent in the first quarter to S$6.3 million, from S$5 million previously.

 

GVT said it benefited from customers shifting more of its products to Asia. It also benefited from contributions from a newly-onboarded customer in the automated sample preparation equipment space.

 

Lastly, revenue from its electronics, aerospace, medical and others segments gained 25.8 per cent to S$12.7 million, from S$10.1 million before.

 

This included a S$3.1 million contribution from its new subsidiary, ACP Metal Finishing, which offset the weakness in electronics.

 

On Monday, shares of GVT soared 11.9 per cent or S$0.10 higher than its closing price of S$0.84 on Friday. This was after the company said it would pause its proposed secondary listing in Malaysia over a possible transaction which could lead to an offer of its shares.