Valuetronics Q3 net profit up 10.3% to HK$39.2 million

SINGAPORE - Mainboard-listed Valuetronics announced on Tuesday (Feb 10) that net profit for its third quarter ended Dec 31, 2014, rose 10.3 per cent to HK$39.2 million (S$6.85 million) from HK$35.5 million a year ago.

The design and manufacturing partner for brands in the consumer electronics (CE) and industrial and commercial electronics (ICE) sectors said revenue rose 3.4 per cent year-on-year to HK$596.2 million.

Its ICE revenue increased by 23.0 per cent to HK$235.0 million for the quarter but its CE revenue fell by 6.4 per cent to HK$361.2 million, due mainly to the slowdown in demand from some customers, said the company.

Earnings per share for the nine months ended Dec 31, 2014, fell from 29.9 HK cents a year ago to 29.4 HK cents.

No dividends have been declared by the company.

Said Ricky Tse, chairman and managing director of Valuetronics: "The aggressive pricing strategies of LED lighting customers introducing lower-priced products will continue to have an effect on our CE segment and such challenges are part and parcel of our business.

"As we continue to manage our reliance on the CE segment, we are benefitting from the strong growth from our ICE customers and will continue our efforts to build up this segment."