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JEP Last:0.625

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JEP - Next Privatisation Target

JEP Holdings reports 2HFY2022 earnings of $2.1 mil, 65.2% lower y-o-y

JEP Holdings 1J4 0.00% has reported earnings of $2.1 million for the 2HFY2022 ended Dec 31, 2022, 65.2% lower y-o-y. The earnings plunge was due to the slowdown in the global semiconductor industry during the 4QFY2022, says the group.

FY2022 earnings fell by 3.7% y-o-y to $7.6 million mainly due to foreign exchange (forex) losses arising from a weaker US dollar (USD) during the period.

Revenue for the FY2022 grew by 8.8% y-o-y to $82.6 million as most of the group&rsquo s segments saw revenue growth on a y-o-y basis. Only sales in the precision machining segment fell due to lower electronic component sales amid a slow recovery in the aviation sector. During the 2HFY2022, revenue fell by 18.2% y-o-y to $38.0 million as most segments saw revenue decline y-o-y and mitigated by the y-o-y growth in the trading and other segments revenue.

During the year, most of the group&rsquo s key markets expanded, with sales in Malaysia leading the growth. China and Canada, on the other hand, saw lower sales y-o-y.

Gross profit for FY2022 increased by 8.7% y-o-y to $16.5 million while gross profit for 2HFY2022 fell by 40.5% y-o-y to $6.6 million.

FY2022 other operating income fell by 62.7% y-o-y to $808,000 due to the lesser grant amount received and forex losses compared to forex gains in the year before.

FY2022 earnings per share (EPS) stood at 1.832 cents.

As at Dec 31, 2022, cash and bank balances stood at $23.8 million.

No dividend has been declared for the period.

Looking ahead, the group says it expects to see a more noticeable recovery of its aerospace business in the 2HFY2023 due to higher volume production of new complex and high value-added parts from its strategic customers.

However, the near-term outlook on the semiconductor industry is less buoyant with revenue expected to decline.

On its plans, the group says it will proceed with its production expansion plan and optimise its production mix to boost performance. Its new factory in Penang, Malaysia is scheduled for completion in the second half of 2023 which will enable it to take on more customer orders and increase production output.

&ldquo Moving forward, the group will continue to maximize operational synergies with UMS to improve overall performance and seek new business opportunities,&rdquo says the group.

https://links.sgx.com/1.0.0/corporate-announcements/WDG8467GQGHAQNX7/748288_JEP%20FY2022%20Press%20Release.pdf

Did some reading up why there are buying activity recently.
There were some coverage on Raytheon Technologies By Motley Fools and Jim Cramer...
and the aviation sector is a bullish buy for recovery play.

Taken from Jep website,
" Today, we are the ONLY large-scale manufacturer service providers for aircraft engine casing in Singapore"
With UMS holding 70+% shares, this could be multibagger for 2023.....

Any hopes from Mr Andy?
Buying spotted last few days...
Majority own by UMS..
return of air travel?

JEP REPORTS RECORD FIRST HALF NET PROFIT
 1HFY2022 revenue surged 51.2% to S$44.6 million while Group net attributable profit soared 198.4% to S$5.5 million

Singapore, 12 August 2022 SGX Catalist-listed JEP Holdings Ltd (" JEP" , and together with its subsidiaries, the &ldquo Group&rdquo ), a leading provider of precision machining and engineering solutions today reported record net profit in the first six months of FY2022. Group revenue in 1HFY2022 jumped 51.2% to S$44.6 million (from $29.5 million in 1HFY2021) while net attributable profit shot up 198.4% to S$5.5 million (from S$1.8 million in 1HFY2021)......

https://links.sgx.com/1.0.0/corporate-announcements/N9U33H6WVA01NDKX/728371_JEP%201HFY2022%20Press%20Release.pdf

When company stop buying back shares
it' s always like this
the share price gostan back

The Group' s profit levels shot past the S$20 million mark for the first time despite higher expenses incurred in all categories - mainly due to consolidation of JEP' s results.

From UMS result:

The Group continued to accelerate its sales performance - delivering a whopping 71% increase in revenue to $84.7 million in 1QFY2022 as compared to the previous corresponding quarter. The sales surge was driven by the sustained increase in semiconductor demand and the consolidation of sales from JEP Holdings Ltd (" JEP" ) - which became a subsidiary of the Group from 2QFY2021 - bringing on board a new revenue stream from the aerospace business. The Group booked aerospace revenue of S$3.0 million in 1QFY2022.

.... UMS will be reporting its Q1 results in a few days n along with it will shed light on contributions from JEP. Nonethess UMS' s recent purchase of JEP' s shares in open-mkt gives clues on few aspects ..... new floor-price of abt $0.38 ..... and likely to keep JEP listed in medium-term n deliver value to shareholders (of both UMS and JEP) ..... as I mentioned back in December (2021), it may raise JEP' s profile with mainboard-listing fr current Catalist

Joelton ( Date: 02-May-2022 10:39) Posted:

JEP Holdings

On Apr 22, UMS Holdings : 558 0% increased its interests in JEP Holdings above 73.0 per cent, with 1,654,200 shares acquired at an average price of 37.9 cents per share.

With a consideration of S$626,231, this increased UMS Holdings&rsquo direct interest in the Catalist-listed stock from 72.92 per cent to 73.32 per cent.

According to UMS Holdings, last year JEP Holdings provided readily available manufacturing facilities in Singapore to support its strong customer order flows, alleviating the production challenges faced in the group&rsquo s Penang campus due to the manpower crunch in Malaysia during the year.

UMS Holdings began acquiring shares of JEP Holdings in January 2018, with a mandatory unconditional cash offer triggered last year, with a final offer price of 20.0 cents per share that closed with valid acceptances representing 71.66 per cent of JEP Holdings.

JEP Holdings is a leading solutions provider of precision machining and engineering services, with a primary focus on the aerospace industry. For its H2 FY21 (ended Dec 31), JEP Holdings achieved record revenue and profit over a 6-month period, with a pre-tax profit of S$9.5 million for its FY21 compared to S$1.0 million in FY20.

Executive chairman and CEO of both UMS Holdings and JEP Holdings, Andy Luong, has more than 20 years of experience in manufacturing front-end semiconductor components.

He recently noted that the current focus of JEP Holdings pivots towards the semiconductor equipment segment, while awaiting the recovery of its core aerospace component manufacturing business.

In FY21, the aerospace industry and equipment manufacturing respectively contributed 19 per cent and 37 per cent of JEP Holding&rsquo s revenue, compared to 47 per cent and 30 per cent in FY20, and 63 per cent and 17 per cent in FY19.