Hi-P bottom line for H1 inches down 3.3% amid Covid-19 disruptions

HI-P International, a global contract manufacturer of smartphones, tablet computers and other consumer electronics, saw its net profit falling by a slight 3.3 per cent to S$24.2 million for the half year ended June 30, 2020, from S$25 million a year ago.

This came amid lower revenue, losses from the China operations due to disruptions related to the novel coronavirus outbreak in February, an inventory provision of S$1.9 million, and higher depreciation of property, plant and equipment.

However, the decline was partially offset by government subsidies granted to the group and several cost-control measures, said the mainboard-listed firm on Wednesday.

Earnings per share stood at three Singapore cents for the six-month period, down from 3.12 cents for the corresponding period last year.

Pandemic-related disruptions led to the group's revenue dipping 5.1 per cent on the year to S$543.8 million for H1 2020, from S$573.2 million.

This decline in revenue was cushioned by higher turnover for the second quarter, Hi-P said.

Its China operations have resumed production since the end of the first quarter, and the group has "gained momentum quickly" in the second quarter to compensate for the shortfall, said Yao Hsiao Tung, executive chairman and chief executive officer.

No dividend was recommended for the first half of the year, just like in H1 2019, as the group wished to conserve cash to support working capital requirements and for future business growth, Hi-P said on Wednesday.

Shares of Hi-P ended flat at S$1.29 on Wednesday, before the results were released.