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Valuetronics Holdings Ltd, a design and manufacturing partner for the world’s leading brands in the consumer electronics (CE) and industrial and commercial electronics (ICE) sectors, has announced a net profit of HK$50.8 million for the three months ended 30 September 2017 (Q2 FY2018), up by 33.5% compared to the same period in the previous fiscal year.
First half FY2018 results also hit record high, with revenue growing by 35.2% year-on-year to HK$1.4 billion, and net profit rising 47.2% to reach HK$99.6 million.
Ricky Tse Chong Hing, Chairman and Managing Director of Valuetronics, commented, “I am pleased to report a strong performance across all segments as we hit record levels for revenue, gross profit and net profit for the quarter and half year. We have worked diligently to sustain the double-digit growth rate even in a challenging operating environment, and as a result of our strong financial performance, we would like to reward shareholders with an interim dividend of 7 HK cents per share.”
The Group’s revenue increased by 26.5% from HK$573.7 million for the three months ended 30 September 2016 (Q2 FY2017) to HK$725.7 million in Q2 FY2018.
In Q2 FY2018, the CE segmental revenue increased by 45.7% to HK$380.4 million from HK$261.1 million in Q2 FY2017, mainly attributable to the increased demand of smart LED lighting products with Internet of Things (IoT) features.
ICE segmental revenue increased by 10.5% to HK$345.3 million in Q2 FY2018 year-on-year. The increase in revenue was mainly contributed by the increase in demand from some ICE customers, in particular, rising demands from in-car connectivity modules.
The Group’s gross profit for Q2 FY2018 increased by 25.5% to HK$104.8 million from HK$83.5 million in Q2 FY2017. Due to a change in product sales mix in the period, gross profit margin decreased slightly to 14.4%.
The Group’s other income remained stable at HK$3.3 million.