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

MAINBOARD-LISTED Valuetronics - a design and manufacturing partner for brands in the consumer electronics (CE) and industrial and commercial electronics (ICE) sectors - on Tuesday posted a 10.3 per cent increase in third-quarter net profit to HK$39.2 million (S$6.85 million), up from HK$35.5 million a year ago.

Revenue rose 3.4 per cent year-on-year to HK$596.2 million, due mainly to the increase in demand from some of its existing ICE customers and contribution from a new ICE customer, said the company.

As a result, its ICE revenue increased by 23.0 per cent to HK$235.0 million for the quarter, up from HK$191.1 million a year ago.

Valuetronics' CE revenue, however, decreased by some 6.4 per cent to HK$361.2 million from HK$385.7 million a year ago, due mainly to the slowdown in demand from some of its CE customers, said the group.

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."