INTEGRATED electronic manufacturing services (EMS) provider Valuetronics’ net profit for the first half ended September grew 10.2 per cent to HK$90.5 million (S$15.6 million) from HK$82.1 million.
Earnings per share grew 11.6 per cent to HK$0.221, versus HK$0.198 in the same period the previous year.
This came as improved margins helped to offset a 3.3 per cent dip in revenue to HK$862.1 million, said the group on Wednesday (Nov 13).
Revenue from consumer electronics fell 17.6 per cent to HK$193.4 million, which Valuetronics attributed to softening demand in end-markets.
Top-line growth from the industrial and commercial electronics segment helped to offset the decline in part, rising 1.8 per cent to HK$668.7 million on the back of revenue contributions from new customers.
Chairman and managing director Ricky Tse noted “encouraging” revenue contributions from a new Canada-based industrial and commercial electronics customer, which Valuetronics acquired in the previous financial year.
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“Together with other new customers acquired in the past two years, these revenue streams offset reduced demand from a consumer electronics customer that is focused on traditional consumer lifestyle products,” he said.
Gross profit margin for H1 FY2025 improved 1.2 percentage points to 16.8 per cent, which the group said was driven by a shift in sales mix and reduced material costs as component shortages eased.
Valuetronics noted that labour costs in China eased due to the depreciation of the yuan against the Hong Kong dollar.
Overall operating expenses and finance costs were nonetheless higher in the half year under review, due to higher administrative expenses which the group considered in line with its enlarged operations.
An interim dividend of HK$0.04 per share was declared on top of a special dividend of the same amount, both to be paid out on Dec 6.
This brings the total dividend for H1 FY2025 to HK$0.08 per share, unchanged from the prior year.
Shares of Valuetronics rose S$0.01 or 1.6 per cent to close at S$0.635 on Tuesday.
