The company, which is a solutions provider for the aerospace industry, reported earnings for 2HFY2024 of $2.1 million, up 838% y-o-y.
Earnings per share for FY2024 came in at 0.757 cents per share.
However, revenue for the FY2024 dropped 2.1% y-o-y to $56.9 million, and revenue for the 2HFY2024 increased by 3.4% y-o-y to $29.6 million.
The group says that its bottom line largely benefitted mainly due to a foreign exchange gain of $0.1 million, and the improved performance of its aerospace business.
The group’s precision machining segment and equipment saw a profit increase of 160.5% y-o-y due to higher revenue with better margin compared to FY2023. This segment primarily comprises two sectors: electronic components and the aerospace sector.
The revenue dip in FY2024 was primarily attributed to a weaker performance from its Equipment Manufacturing and Trading and Others segments, which were impacted by the slowdown of the semiconductor market during the year.
See also: Jardine Matheson posts loss of US$468 mil, but underlying net profit stood at US$1.47 bil
JEP’s key markets showed a mixed performance with sales rising in Malaysia, Canada and other markets, while Singapore, China and the USA posted lower revenue.
Sales in Canada rose from $2.6 million to $2.8 million, supported by higher sales in the Precision Machining segment. Revenue from other markets also increased from $2.5 million to $2.8 million.
In contrast, sales in Singapore decreased from $26.2 million in FY2023 to $24.8 million in FY2024, primarily due to lower revenue from the Equipment Manufacturing and Trading & Others segments.
Revenue from China fell 24.4% from $7.8 million to S$5.9 million, mainly due to a decline
in sales in the Trading & Others segment. Revenue in USA also slipped, from $14.1 million to $13.6 million, on the back of lower sales from its Equipment Manufacturing business.
For the 2HFY2024, the group posted a jump in earnings largely from foreign exchange gain as well as gain on the disposal of property, plant and equipment.
The group is confident that the surge in air travel will drive strong demand for new aircrafts. It sees growth opportunities in all its core business segments, particularly in aerospace and semiconductor sectors.
No dividend has been declared for the FY2024 as the group is retaining funds for working capital use.
Shares in JEP Holdings closed 2.5 cents higher or 9.434% up at 29 cents on Feb 27.
