SINGAPORE (Nov 9): Electronics manufacturer Valuetronics Holdings posted record earnings of HK$50.8 million ($8.9 million) for 2Q18, up 33.5% from HK$38.1 million a year ago on higher revenue.
Group revenue grew 26.5% to HK$725.7 million over the quarter from HK$573.7 million a year ago on higher contributions from both Consumer Electronics (CE) and Industrial & Commercial Electronics Segments (ICE), which grew 45.7% and 10.5% to HK$380.4 million and HK$345.3 million respectively.
The higher CE segmental revenue was mainly attributable to increased demand of smart LED lighting products with Internet of Things (IoT) features, while the rise in ICE revenue came on the back of higher demand for in-car connectivity modules used in the automotive industry.
Due to a change in product sales mix in the period, gross profit margin decreased to 14.4% in 2Q18 from 14.6% in 2Q17.
Other income was lower at HK$3.3 million compared to HK$3.34 million a year ago, while administrative expenses grew 13.5% to HK$42.1 million over the quarter mainly due to an increase in staff costs.
As at end Sept, the group had a net current asset of HK$713.4 million, with cash and bank deposits of HK$627.5 million.
An interim dividend of 7 HK cents (1.22 cents) per share has been declared.
“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,” says Ricky Tse Chong Hing, chairman and managing director of Valuetronics.
Looking ahead, the group expects to achieve profit growth for FY18.
Shares in Valuetronics closed 0.5% higher at $1.04 on Wednesday.
