SINGAPORE - Stronger demand for smart LED lighting products lifted results for Valuetronics Holdings for its second quarter.
Net profit jumped 33.5 per cent to HK$50.8 million (S$8.9 million) from the preceding year, the electronics manufacturing services provider said in a Singapore Exchange filing on Thursday morning.
For the three months ended Sept 30, revenue went up 26.5 per cent to HK$725.7 million from the year-ago period. The rise in revenue was due mainly to increased demand for smart LED lighting products with Internet of Things features, which spurred a 45.7 per cent jump in its consumer electronics segment, it said.
The demand for these smart LED lighting products have increased significantly because of continued market penetration, as well as their compatibility with iOs, Android and voice-activated smart home devices of the largest e-commerce company in the US, said Valuetronics.
Looking ahead, the firm said that various indicators show that economic activities in the US, its largest market, will grow moderately.
"As such, the group expects its customers and itself to benefit from the continuous growth momentum in the second half," it said in the results statement. "Meanwhile, the group still continues to see supply chain challenges, such as raw material price fluctuations and extended procurement lead times."
Valuetronics's board has declared an interim dividend of seven Hong Kong cents a share in light of the strong performance; none was declared for the same period last year.