Grand Venture Technology, whose share price has dropped by around 10% following the US tariffs, is reaffirming its 1HFY2025 revenue guidance at between $90 million and $96 million.
The company points out that in FY2024 ended Dec 31, 2024, direct exports to US were less than 10% of its total revenue and does not expect a significant increase in US-bound exports in FY2025.
In addition, more than 70% of these exports originated from Singapore, which is subject to the lowest applicable tariff under the latest trade measures albeit on a 90-day pause.
According to GVT, it is actively engaging customers to redirect the majority of US-bound exports to their manufacturing sites in Asia, thereby mitigating potential disruptions or cost impacts.
The remaining portion of US exports are primarily related to so-called new product introductions, limited in volume and part of planned transitions for products expected to scale up in Asia over time to serve regional demand.
The company adds that its products are used predominantly to support customers within Asia, particularly in semiconductor and life sciences applications.
"Also, aerospace-related products are mainly bound for Europe, further diversifying end market exposure across geographies," the company adds.
"GVT remains in constant dialogue with key customers to stay informed on any changes in sourcing strategies or operational requirements and is prepared to adjust accordingly with the agility to respond quickly to different scenarios.
"We remain focused on executing our strategic priorities that is backed by a resilient business model, positioning us well to navigate the evolving global dynamics while continuing to deliver sustainable and long-term growth.
For FY2024, 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 record revenue trnslated into FY2024 earnings of $14.4 million, 9.3 times higher than FY2023’s earnings of $1.5 million.
Grand Venture Technology shares changed hands at 68 cents as at 10.31 am, up 11.57% thus far today.
