Sunright posts sharp rise in profit to S$9.2 million on strong revenue

Sunright, which provides burn-in and test services for the semiconductor industry, reported a sharp rise in net profit to S$9.2 million from S$1.4 million last year.
Sunright, which provides burn-in and test services for the semiconductor industry, reported a sharp rise in net profit to S$9.2 million from S$1.4 million last year. PHOTO: GOOGLE MAPS

SINGAPORE - Sunright, which provides burn-in and test services for the semiconductor industry, reported a sharp rise in net profit to S$9.2 million from S$1.4 million last year.

Revenue for the 12 months ended July 31 was up 14 per cent at S$148 million, due to higher revenue in the burn-in, testing and electronic manufacturing services segment.

Raw materials and consumables used, as well as changes in inventories of finished goods and work-inprogress, rose by 15 per cent to S$34.6 million, to support the increased sales.

Employee benefits expense increased by 8 per cent, mainly due to adjustments to wage rates,higher staff compensation to support the increased revenue, improved staff welfare, training and skills upgrading to raise productivity and production efficiency.

Depreciation was higher by 14 per cent to S$22.6 million, as additional machinery and test equipment were purchased during the current financial year.

Earnings per share swelled to 7.5 cents from 1.1 cents previously while net asset value per share climbed by 5.8 cents to 63.1 cents.

Sunright expects to perform satisfactorily this financial year, citing the global growth in the semiconductor industry.

World-wide semiconductor revenue was estimated to reach US$401.4 billion this year, representing an increase of 16.8 per cent from 2016.

This will likely be a record year surpassing US$400 billion mark, driven by improvements in the memory segment, it noted.

The company has recommended a final dividend of 0.3 cent a share, up from 0.2 cent last year.

Sunright shares ended 3.5 cents, or 6.2 per cent, higher at 60 cents.

The results were announced after market close.