Catalist-listed Jubilee Industries Holdings (Jubilee), a provider of electronics components and plastic injection moulds, reported revenue of $88.4 million for 1H19, a marginal growth of 1.1 percent from $88.4 million in 1H18.
The growth was mainly driven by Mechanical Business Unit (MBU) which recorded a commendable 92.5 percent improvement in revenue to $7.7 million. The revenue contribution for MBU that increased $3.7 million is more than offsetting the declines of $2.8 million seen in Electronic Business Unit (EBU).
Gross profit for 1H19 jumped 32.9 percent to $7.4 million underpinned by increased business from the top two product lines (Hynix and Samsung) which together contributed close to $4.7 million in gross profit. Meanwhile, the gross profit margin improved from 6.4 percent to 8.4 percent due to the leaner manufacturing with tighter control on direct overheads and selection of products with higher margin and commission.
Operating expenses climbed 3.7 percent to $5.2 million largely due to higher distribution and marketing expenses as well as administrative expenses.
Despite flat revenue growth, net profit tripled to $2.6 million for 1H19 on higher gross profit and improved gross profit margin.
Jubilee remains on track for its expansion strategy and recently completed acquisition of Honfoong Plastic Industries (Honfoong). Besides adding significant plastic injection moulding capacity to Jubilee’s operations, the acquisition will further facilitate top and bottom line growth of MBU which comprises the precision plastic injection moulding as well as mould design and fabrication services. Meanwhile, the acquisition provides the group with its first direct medical supplies customer and access to new markets beyond its traditional territories of Malaysia and China to the rest of Asia Pacific.