Globetronics Technology Bhd (KLSE:GTRONIC) has released its financial results for the full-year 2023, showing a decrease in revenue to RM131.8 million, down 27% from the previous year. The company’s net income also decreased by 42% to RM26.4 million, with a profit margin of 20%, down from 25% in 2022. 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. While this may seem promising, it is important to note that there are warning signs for investors to consider before making any investment decisions.
The Malaysian Semiconductor industry has not been as strong as expected, with Globetronics Technology Bhd’s shares down 7.1% from a week ago. Analysts expect this trend to continue as other companies also experience declining revenues and profits.
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In conclusion, while Globetronics Technology Bhd reported lower revenue and net income for the full-year 2023 compared to the previous year, its EPS exceeded analyst expectations by 1.3%. Looking ahead, the company is forecasting a moderate growth rate for revenue over the next three years compared to the Semiconductor industry’s growth forecast in Malaysia. However, there are warning signs investors should be aware of before making any investment decisions related to this sector due to declining revenues and profits observed across various companies within this industry.