Valuetronics posts 12.8% drop in Q2 profit on flash flood provision
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SINGAPORE - Valuetronics Holdings saw a 12.8 per cent decrease in net profit for the second quarter ended Sept 30, the electronics manufacturing services company said on Monday (Nov 12) morning.
Its net profit fell to HK$44.3 million (S$7.8 million) from HK$50.8 million a year ago, on the back of lower revenue and a provision of HK$13.6 million related to flash flooding at its Danshui factory in late September 2018.
Valuetronics said it is making an insurance claim for the damages from the flash flooding, and has made a provision of HK$13.6 million for insurance deductibles and non-recoverable costs while it works with the insurer on the claim.
Revenue decreased 1.3 per cent to HK$716.2 million from HK$725.7 million, with the consumer electronics segment falling 22 per cent on weaker performance by its smart lighting business and the disruption caused by the flash floods.
For the half year ended Sept 30, net profit fell 5.6 per cent to HK$93.98 million and revenue decreased 0.1 per cent to HK$1.42 billion.
Earnings per share for the half year decreased to 21.9 HK cents from 23.6 HK cents a year ago.
Valuetronics declared an interim cash dividend of five HK cents per ordinary share to be paid on Dec 10, 2018, compared with a dividend of seven HK cents for the corresponding period of the previous year.
Valuetronics shares closed at HK$3.922 on Friday.
