Hi-P International back in the black for Q4 with S$28.5m profit

MAINBOARD-LISTED Hi-P International swung into the black for its fourth quarter.

Net profit was S$28.5 million, a reversal from a net loss of S$48.0 million in the preceding year, the group said in a Singapore Exchange filing on Thursday evening.

For the three months ended Dec 31, revenue shrank 4.6 per cent to S$356.8 million from the previous year. The decrease in revenue was due partly to uncertain economic conditions, it said.

However, the disposal of an investment in a startup company on April 13, 2016 led to a S$10.5 million pre-tax gain. Thus, the group's other income spiked by 56.8 per cent year on year to S$18.2 million for FY2016.

This brings full-year net profit to S$54.5 million, a turnaround from a net loss of S$45.4 million in the previous year, due to tighter cost controls and enhanced operational efficiency.

Earnings per share came in at 3.5 Singapore cents, a reversal from a loss per share of 5.88 Singapore cents in the previous year. Net asset value per share was 5 per cent higher at 71.62 Singapore cents as at Dec 31, up from 68.19 Singapore cents in a year ago.

A final dividend of 0.4 Singapore cent was proposed, bringing total dividends for FY2016 to 0.8 Singapore cent.

Executive chairman and chief executive officer Yao Hsiao Tung said: "In the year ahead, our efforts are focused on business development in order to grow our revenue. However, the worldwide situation is full of uncertainties and we are beginning to see an increase in competition which could impact many companies."

Hi-P shares ended S$0.01 or 1.961 per cent higher at S$0.52 on Thursday.