Jubilee Industries Holdings (JIH) is a one-stop solutions provider in the electronics manufacturing services. The Group has two main business segments: Mechanical Business Unit (MBU), which is engaged primarily in precision plastic injection moulding and mould design as well as fabrication services and Electronics Business Unit (EBU), which distributes integrated electronic components.

JIH has production facilities in Malaysia, with plans for new facilities in Batam, Indonesia. Its products and services are sold to customers in the US, the PRC, Singapore, India, Indonesia, Vietnam, Europe and Malaysia.

After suffering consecutive years of losses, JIH finally turned the corner in FY18 with a net profit of $1.1 million in FY18 compared to a net loss of $7.5 million in FY17. Its top line rose to $160 million in FY18 from $108.8 million a year ago. JIH attributed the turnaround to improved performance in both the MBU and EBU segments, especially the latter contributing $151.8 million to FY18 revenue.

WE Components, operating under EBU, enjoyed a bumper year in the electronics component distribution universe which saw robust sales of product lines from Hynix, Semco and NeoPhotonics Corporation. The remaining $8.2 million of revenue came from MBU, which supports key customers such as Flextronics, Philips, Meiban and Honda.

(S$’m) FY17 FY18 Change (%)
Revenue 108,758 160,006 47.1
Gross Profit 3,714 7,969 114.6
Pre-tax Profit/(Loss) (7,482) 1,083 NM
Net Profit/(Loss) (7,482) 1,063 NM

During the period, gross margin improved from 3.4% in FY17 to 5% in FY18, which was attributable to the focus on higher margin products and an improved product mix.

Its strong performance was also due to greater cost efficiencies in its operations and rising demand for products in the global electronics and semiconductor equipment markets.

Going forward, it has been forecasted that worldwide semiconductor revenue will reach US$451 billion in 2018, which is 7.5% higher than the US$419 billion forecast for 2017, according to Gartner, Inc.

The favourable market conditions for memory sectors are also expected to continue in 2018, with price increases for both DRAM and NAND flash memory among the factors driving the positive forecast, according to Gartner, Inc.

Against this favourable industry backdrop, the Group expects its EBU’s performance to improve further in 2018. The top four product lines under EBU’s distribution segment include Hynix, Samsung Electro-Mechanics, Renesas and NeoPhotonics. The Group will continue to focus on improving its product mix to increase margin and profitability.

As for the MBU, the Group is focused on improving its machine utilisation rates for its Precision Plastic Injection Moulding business particularly in Malaysia to achieve greater operational efficiency. It is also seeking opportunities to expand its facilities and capabilities to cater to the expected increase in demand for its mechanical business products.

Get weekly updates from us

Build your wealth. Start now.

Enjoying our content? You might want to subscribe to our weekly newsletter.
Hand-picked content and wealth-building resources for you.

You May Also Like

Editor's Picks