Valuetronics H2 profit up 14.4% to HK$65.1 million; proposes HK$0.06 a share special dividend

VALUETRONICS Holdings on Tuesday (May 30) reported net profit of HK$65.1 million (S$11.3 million) for the half year ended Mar 31, up 14.4 per cent from its H2 FY2022 net profit of HK$56.9 million as higher interest rates helped to boost the group’s interest income.

Its board has proposed a special dividend of HK$0.06 per share on top of a final dividend of HK$0.10.

Including its interim dividend of HK$0.04 paid out in December 2022, this brings the group’s full-year payout to HK$0.20 as opposed to its FY2022 aggregate dividend of HK$0.14 per share.

Earnings per share (EPS) for the half year stood at HK$0.156 versus HK$0.131 the previous year. This brings the group’s full year EPS to HK$0.291, up from HK$0.26 in FY2022.

Revenue for H2 fell 5 per cent on the year to HK$962.1 million from HK$1 billion, dragged down by a 51.7 per cent year-on-year fall in consumer electronics revenue to HK$187.3 million amid softening demand in end-user markets.

This more than offset higher revenue contributions from the industrial and commercial electronics segment, which grew 23.9 per cent to HK$774.8 million over the period.

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The topline decline was, however, cushioned by a surge in net other income and gains for the half year, which rose 160.7 per cent to HK$19.1 million due to multiple interest rate hikes by the US Federal Reserve.

For the full year, Valuetronics reported a net profit of HK$123 million, up 8.3 per cent from HK$113.5 million in FY2022.

FY2023 revenue dipped 0.7 per cent to HK$2 billion, while other income and gains were up 117.5 per cent to HK$32 million from HK$14.7 million previously.

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Though there was “some respite in the component shortage problem” faced by the industry compared to the previous year, Valuetronics noted that “significant reductions in component costs and improvements in lead time did not materialise”.

It expects component supply chain challenges to persist and to exert pressure on the group’s gross profit margins over FY2024.

Valuetronics ended Monday flat at S$0.51.