Grand Venture Technology (GVT) has reported earnings – or total comprehensive income for the financial year attributable to owners of the company – of $14.4 million for the FY2024 ended Dec 31, 2024, 9.3 times higher than FY2023’s earnings of $1.5 million, due mainly to record revenue during the year. Earnings per share (EPS) stood at 3.21 cents on a basic and diluted basis.
FY2024 profit after tax (PAT) stood at $10.9 million, 96.4% higher than FY2023’s PAT of $5.5 million. The difference between the total comprehensive income and PAT, however, was due to currency translation differences arising from the consolidation of foreign operations. In FY2024, this stood at a positive $3.5 million compared to a negative translation of $4 million in the year before.
Adjusted net profit rose by 86% y-o-y to $11.2 million.
During the year, GVT reported revenue of $159.5 million, 43.3% higher y-o-y and a new high for the group. The figure also stood 3.3% above GVT's full-year guidance of $154.3 million. The revenue surge was attributed to healthy demand seen across all segments.
Gross profit in FY2024 rose by 40.3% y-o-y to $39 million even though gross profit margin dipped by 0.5 percentage points y-o-y to 24.5%. The slightly lower margin was mainly attributable to higher expenses from the onboarding of new customers as well as a one-off $0.7 million provision for inventory and write-down. Excluding non-recurring items, the gross profit margin would have been 24.9%.
Ebitda for the year rose by 29% y-o-y to $28.8 million while ebitda margin fell by two percentage points y-o-y to 18.1%.
Segmentally, semiconductor revenue grew by 64.9% y-o-y to $87.8 million, contributing 55% to the group’s total revenue. The growth was due to strong demand for high-bandwidth memory (HBM) testers and the commencement of mass production for GVT’s front-end customers. The demand is expected to accelerate in 2025 and beyond.
According to the group, GVT’s additional involvement in advanced semiconductor manufacturing technologies, including through-silicon via (TSV), thermal compression bonding (TCB), hybrid bonding (HB), and HBM will be “key drivers” for its future growth.
GVT’s life sciences segment saw revenue increase by 11.3% y-o-y to $22.9 million, contributing 14.4% to its overall revenue. The higher revenue was due to increasing wallet share gain from new projects being qualified with key customers, which stemmed from the shift in the supply chain to Southeast Asia.
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The electronics, aerospace, medical and other segment saw revenue increase by 30.3% y-o-y to $48.8 million, contributing 30.6% to the group’s total revenue. The increase was attributed to the strong demand in the aerospace and medical segments and contributions from GVT’s acquisition of ACP Metal Finishing in FY2024.
“The addition of ACP would strengthen our competencies to penetrate deeper into the front-end semiconductor segment and enlarge our service offerings in aerospace, positioning us well to capitalise on rising demand due to the overall commercial plane order backlog and shortage of qualified suppliers within this region,” says GVT.
“GVT’s strategic investments in capabilities and capacity to position ourselves well for next-generation semiconductor packaging and artificial intelligence (AI)-driven solutions are delivering strong results. The rapid adoption of AI and high-performance computing (HPC) is driving demand for advanced packaging, where we are playing a critical role in producing solutions for leading applications such as TSV, TCB and HBM solutions,” says Ricky Lee, executive deputy chairman of GVT.
“At the same time, our expanding presence in life sciences and aerospace reinforces our diversification strategy that is further strengthened by our ACP acquisition, reinforcing our diversification strategy and enhancing our capabilities in high-value segments,” he adds.
The group has proposed a final dividend of 0.3 cents per share, up from last year’s dividend of 0.1 cents per share.
The dividend will be subject to GVT’s shareholders’ approval at its upcoming annual general meeting (AGM) and will be payable on May 23.
With the global semiconductor industry undergoing rapid transformation, GVT is guiding for its 1HFY2025 revenue to be between $90 million and $96 million, representing a y-o-y growth between 31.7% and 40.5%.
Shares in GVT closed 0.5 cents lower or 0.59% down at 84 cents on Feb 25.
