Valuetronics H2 profit drops 40.5% to HK$56.9m

ELECTRONICS manufacturing services provider Valuetronics on Thursday (May 26) posted a 40.5 per cent drop in its net profit for the second half ended Mar 31.

Net profit for the 6-month period stood at HK$56.9 million (S$10 million), compared with a net profit of HK$95.6 million posted the same period a year ago.

The results translate to earnings per share (EPS) of HK$0.131, against an EPS of HK$0.22 in H2 2021.

Revenue was down 14.6 per cent to HK$1 billion from HK$1.2 billion in the year-ago period.

Valuetronics said the severe shortages of certain key electronic components had impacted the company’s ability to meet orders in the full-year period. Revenue declined as a result, subsequently leading to a drop in profit.

For the full year ended Mar 31, net profit was down 39.3 per cent to HK$113.5 million, while revenue was down 11.1 per cent to HK$2 billion.

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The group’s industrial and commercial electronics (ICE) segment, which contributed 65.1 per cent of total revenue, fell 17.5 per cent to HK$1.3 billion from HK$1.6 billion a year ago.

This was mainly due to a “significant” drop in sales from one of the group’s auto customers, which switched its production from Valuetronics’ factory to another vendor in North America. The shortage of key electronic components also affected order fulfilment for certain ICE customers.

Meanwhile, the consumer electronics segment saw a 3.8 per cent gain in revenue to HK$706.9 million from HK$680.7 million in the year-ago period, on the back of a rebound in smart lighting orders.

The group’s board is recommending a final dividend of HK$0.10 per share for FY2022. Together with the interim dividend of HK$0.04 paid in December 2021, the total dividend for FY2022 amounts to HK$0.14 per share.

The FY2022 dividend will be paid out on Aug 23, after books closure on Aug 12.

Last year, Valuetronics recommended a final dividend of HK$0.16 per share for the full year, bringing the aggregate dividend to HK$0.21 per share.

Valuetronics closed flat at S$0.525 on Wednesday.