ELECTRONICS manufacturer Valuetronics : BN2 0%posted a 42 per cent increase in net profit to HK$82.1 million (S$14.3 million) for H1 FY2024 ended Sep 30, compared with HK$57.9 million during the year-ago period.

It declared a special dividend of HK$0.04 per share on top of an interim dividend of HK$0.04 per share on Thursday (Nov 9), due to higher interest income.

Both interim and special dividends will be paid on Dec 1, after book closure on Nov 24.

The results translate to earnings per share of HK$0.198, up from HK$0.135 in H1 the previous financial year.

Revenue for the period stood at HK$891.3 million, down 15.2 per cent from HK$1.1 billion, because of falling demand across its consumer electronics, as well as industrial and commercial electronics segments.

Gross profit, however, increased 5.8 per cent to HK$138.9 million, leading gross profit margin to improve to 15.6 per cent from 12.5 per cent. This was attributed to more stable material costs, driven by the relief of component shortage issues.

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“In addition, direct labour costs in China have also normalised due to a more stable labour supply and the depreciation of the renminbi,” Valuetronics said.

Both selling and distribution expenses and administrative expenses went down, while the group registered a 123 per cent rise in other income to HK$28.8 million. This was mainly driven by the US Federal Reserve lifting interest rates, which boosted interest income.

The group also highlighted its strong financial position, with no bank borrowings as at Sep 30.

Its cash and cash equivalents stood at HK$1.1 billion, up from HK$1 billion as at end-March.

Ricky Tse, chairman and managing director of Valuetronics, said: “Despite the challenging macro environment, we have managed to onboard customers in new and various sectors who will help to further diversify our revenue.

“We will continue to leverage our Vietnam and China campuses to provide diversified manufacturing solutions and seize opportunities to acquire new customers.”

Valuetronics also noted that it intends to continue with the share buyback programme to “increase shareholders’ value and improve the return on equity of the group”.

Shares of Valuetronics ended 0.9 per cent or S$0.005 lower at S$0.535 on Thursday.