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Grand Venture Technology registers 1QFY2024 net profit of $2 mil, up 34.1% y-o-y

Khairani Afifi Noordin
Khairani Afifi Noordin • 2 min read
Grand Venture Technology registers 1QFY2024 net profit of $2 mil, up 34.1% y-o-y
Revenue grew 14.4% y-o-y to $30.8 million, while ebitda grew 10.6% to $6.47 million. Photo: Albert Chua/The Edge Singapore
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Grand Venture Technology (GVT) has posted net profit of $2 million for its 1QFY2024 ended March, up 34.1% y-o-y driven by continued wallet share expansion with its key customers.

Revenue grew 14.4% y-o-y to $30.8 million, while ebitda grew 10.6% to $6.47 million.

Gross profit margin and ebitda margin were relatively stable in the quarter, with continued ongoing absorption of expanded capacities and capabilities in preparation for future growth, the company says in a filing.

Segment-wise, revenue from the semiconductor segment increased by 14.8% y-o-y to $15.7 million, mainly due to gradual demand recovery. 

The life sciences segment recorded a 6.2% growth y-o-y to $5 million. This is attributed to the commencement of mass production of certain mass spectrometers and its bolt-on instruments as well as expanded wallet share in the segment. 

Revenue from the electronics, aerospace, medical and others segment rose 18.4% y-o-y to $10.1 million in 1QFY2024. This is due to robust demand from customers from the aerospace and medical industries, which was partially offset by weakness in the electronics segment.

See also: Fortress Minerals reports 7.6% lower y-o-y earnings for 1QFY2025

Following its acquisition of ACP Metal Finishing (ACP) in March 2024, GVT has commenced integration of ACP’s operations, employees and resources with GVT’s. Apart from the anticipated post-integration synergies, the company expects to leverage the combined offerings to strengthen its competitive position among current and potential customers in the front-end semiconductor industry. 

While rapid innovation in artificial intelligence (AI) is driving additional chip demand around graphic processing units (GPU) and high bandwidth memory (HBM), the outlook is uneven across the customers in this sector, the company says. As such, GVT is cautiously optimistic about a gradual improvement in semiconductor demand in the later part of 2024. 

GVT is confident in achieving the higher end of its February 26 target revenue guidance between $58 million and $64 million for the financial period ending June 30.

Shares in GVT closed 1 cent lower or 1.86% down on May 29 at 52.5 cents.

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