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Hi-P International's Q3 profit up 24.9%

MAINBOARD-LISTED Hi-P International Limited posted an increase of 24.9 per cent in its third-quarter net profit to S$38.4 million, fuelled by improvements to operational efficiency.

For the three months ended Sept 30, 2017, earnings per share stood at 4.76 Singapore cents, up from 3.76 Singapore cents a year ago.

Revenue for Q2 2017 rose 6.2 per cent to S$411.3 million.

Hi-P said that along with the growth in revenue, an improved product mix and operational efficiency drove a 24.7 per cent year-on-year increase in gross profit to S$68.1 million. Additionally, better capacity utilisation, manufacturing yield improvement and effective cost controls led to gross profit margin expansion from 14.1 per cent for Q3 2016 to 16.5 per cent for Q3 2017.

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Looking ahead, the group expects higher sales for Q4 2017 compared to Q1 2017. It added that inventories have increased from S$142.9 million as at Dec 31, 2016 to S$195.7 million as at Sept 30, 2017.

Separately, Hi-P announced that it has appointed Yong Inn Nam as its chief operating officer.

Mr Yong will be responsible in overseeing the group's operation, reporting to the chief executive officer, and managing the "efficiency of the business and driving sustainable growth", the company said in a Singapore Exchange note on Monday.

Hi-P closed trading at S$2.06 on Monday, up 14.5 Singapore cents, or 7.6 per cent.