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Hi-P International Q1 profit up 20% to S$10.1m

COMPONENTS manufacturer Hi-P International posted a 20 per cent increase in net profit to S$10.1 million from S$8.4 million in the year ago period, despite an increasingly competitive landscape, it said on Wednesday.

Earnings per share increased to 1.25 Singapore cents from 1.04 Singapore cents in the preceding year.

For the three months ended March 31, revenue expanded 15.1 per cent to S$281.1 million from S$244.2 million a year ago.

The rise in revenue was due mainly to higher sales volume in the first quarter, it said.

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As a result of the weakening of the US dollar against the Chinese renminbi and Singapore dollar, the group reported a S$13 million net foreign exchange loss which was partially offset by net fair value gain on hedging instruments amounting to S$1.7 million.

These factors were the primary reasons behind the more than double increase in the group's other expenses, which rose to S$11.3 million for the period, Hi-P said.

Net asset value per share edged up to 68.12 Singapore cents as at March 31, from 65.44 Singapore cents three months ago.

Said Yao Hsiao Tung , executive chairman & CEO, Hi-P: "In light of the difficult business landscape, we have proactively adopted measures to strengthen the management team. In addition, our business development team has put in more effort to diversify our customer base and increase market share with existing customers. Furthermore, the team is focused on market changes to grab business for new products related to artificial intelligence.

"Backed by our strong balance sheet, we continue to explore value-driven opportunities for mergers and acquisitions to ensure our long-term growth and sustainability."

Hi-P shares ended S$0.03 or 1.8 per cent up at S$1.69 on Wednesday before the announcement.