Hi-P International enjoys another profitable quarter on higher sales, better product mix

Hi-P International has had another profitable quarter. It reported a net profit of $10.9 million for the second quarter, reversing from a loss of $2.1 million in the same period last year.

The contract manufacturer had reported a profit of $6.9 million in the first quarter.

Revenue for the three months to June 30 rose by 13.2 per cent to $285 million.

The rise in revenue was mainly due to increased orders from existing customers, while the better product mix resulted in the reversal from a net loss.

Earnings per share were 1.32 cents against a loss of 0.25 cent previously while net asset value per share climbed to 73.69 cents compared to 70.1 cents as at Dec 31.

For the second half year, the group will maintain its focus on:

* ongoing diversification of its customer base;

* continuous improvement of its cost structure via automation and lean manufacturing; and

* maximising shareholder value through profitability and growth.

Barring any other unforeseen circumstances, Hi-P expects to register higher revenue and profit in the second half year.