Singapore-listed Valuetronics posts second quarter profit of HK$36.3 million

SINGAPORE -Mainboard listed Valuetronics Holdings, which designs and manufactures for leading consumer electronics brands said net profit for the three months ended Sept 30 was HK$36.3 million, a fall of 8.4 per cent from the previous year.

Revenue was down 0.7 per cent to HK$627.6 million.

Revenue for the six months was up 0.9 per cent at HK$1.25 billion while net profit was 3.7 per cent lower at HK$70.2 million.

Earnings per share for the six months was 18.9 HK cents, down from 20.1 HK cents while net asset value as at Sept 30 was 194.6 HK cents down from 197.2 HK cents.

Mr Ricky Tse Chong Hing, chairman and managing director of Valuetronics said: "Our focus on developing the industrial and commercial electronics segment has paid off."

While there was growth in the group's industrial and commercial electronics customer portfolio, the consumer electronics segment faltered, in particular the LED lighting business. Customers in this segment continued their aggressive pricing strategies in introducing lRower priced products, and such trend is not likely be reversed in the near future.

Besides cutting prices, some brand owners in the LED lighting business are also making plans for major restructuring of their business activities in the light of the challenging business economics.

Such price pressure has resulted in and will continue to have an adverse impact on the Group's margin which cannot be fully offset by greater in-house operational efficiency and supply chain productivity.

Valuetronics said that it will stay alert amidst fast changing trends and manage its reliance on this segment.