http://infopub.sgx.com/FileOpen/VHL-2QFY...eID=263210
Singapore, 8 November 2013 – Mainboard listed Valuetronics Holdings Limited
(“Valuetronics”, “鸿通电子控股有限公司” or collectively with its subsidiaries, the “Group”),
a premier design and manufacturing partner for the world’s leading brands in the consumer,
industrial and commercial electronics sectors today announced that its net profit for the
three months ended 30 September 2013 (“Q2FY2014”) increased by more than ten times to
HK$39.6 million, due to an increase in demand from some of its Industrial and Commercial
Electronics (“ICE”) customers and Consumer Electronics (“CE”) customers as well as no
further expenditure having been incurred for its loss-making Licensing business, which was
terminated in the previous financial year.
Mr Ricky Tse Chong Hing (“谢创兴”), Chairman and Managing Director of Valuetronics
commented: “I am pleased with the record revenue for this second quarter despite the
challenging business conditions. Our profitability has grown as we continue our business
development efforts to drive contributions from new customers and expand our product
portfolio, especially in the Industrial and Commercial Electronics segment. We are looking
at ways to further increase both our capacity and productivity in a prudent manner, in
tandem with our customers’ market outlook.”
The Group’s revenue increased by 6.1% or HK$36.5 million in from HK$595.5 million for the
three months ended 30 September 2012 (“Q2FY2013”) to HK$632.0 million in Q2FY2014,
mainly due to growth from its ICE and CE customers. For the six months ended 30
September 2013 (“HY2014”), revenue increased by 1.7% or HK$20.3 million to HK$1,243.3
million from HK$1,222.9 million for the previous corresponding period (“HY2013”).
In Q2FY2014, CE revenue increased by 3.5% to HK$451.7 million from HK$436.4 million in
Q2FY2013 and ICE revenue increased by 13.3% to HK$180.3 million in from HK$159.1
million in Q2FY2013, due to an increase in demand from some of the Group’s CE and ICE
customers respectively.
On a six-month basis, CE revenue decreased by 3.3% to HK$885.0 million from HK$915.3
million mainly due to a change in sales mix from some of the CE customers, while ICE
revenue grew 16.5% to HK$358.3 million from HK$307.6 million due to an increase in
demand from some of the ICE customers.
The Group’s gross profit for Q2FY2014 increased by 16.3% to HK$84.0 million from HK$72.3
million in Q2FY2013, while its gross profit margin improved from 12.1% to 13.3%. For
HY2014, gross profit increased by 11.4% to HK$162.9 million from HK$146.2 million in
HY2013, while gross profit margin improved from 12.0% to 13.1%. The changes in gross
profit margin reflected the change in product sales mix during the periods reviewed.
Selling and distribution costs grew by 20.1% to HK$10.8 million for Q2FY2014 and grew by
17.5% to HK$22.4 million for HY2014 mainly due to increases in logistic costs to deal with
the increase in sales volume and commission expenses for sales representatives.
Administrative expenses also increased by 7.8% to HK$30.8 million in Q2FY2014 and by 6.5%
to HK$60.7 million for HY2014 mainly due to salary increases for eligible employees during
the periods reviewed.
Net profit attributable to shareholders for Q2FY2014 grew by 1,097.6% to HK$39.6 million from HK$3.3 million. For HY2014, net profit attributable to shareholders grew by 151.0% to HK$72.9 million from HK$29.0 million.
As at 30 September 2013, Valuetronics has a net asset value per share of HK176.5 cents (31 March 2013: HK164.5 cents), total assets of HK$1,415.7 million (31 March 2013: HK$1,112.4 million), cash and cash equivalents of HK$288.7 million (31 March 2013: HK$221.6 million),
and shareholders’ funds of HK$644.4 million (31 March 2013: HK$592.2 million) with zero debt.
Business Outlook
The business conditions under which the Group operates remain challenging, which include rising wages and costs in the PRC. Notwithstanding, the Group continued to experience
improvement in demand and orders from both CE and ICE segments. The Group has also managed to achieve record high revenue for Q2FY2014.
Consumer Electronics segment
To support the seasonal demand from major CE customers in Q2FY2014, the Group has increased its production capacity. During this quarter, it has also successfully completed the co-development of a semi-auto assembly line with one of its customers to support their
growth in the mass market.
Industrial and Commercial Electronics segment
The Group continued to benefit from the strong growth of some of its major ICE customers in Q2FY2014. The transfer of production from new and existing ICE customers has been smooth and successful, and this has enhanced the Group’s product portfolio as well as contributed to the increase in revenue for this segment.
While the Group’s efforts to drive contributions from new ICE customers continue unabated, it will continue to remain vigilant in monitoring market developments, and improve its fundamentals i.e. design and development capabilities, production efficiencies and inventory management.
Barring unforeseen circumstances, the directors expect the Group to achieve growth in profitability for the financial year ended 31 March 2014.
(not vested)
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