SINGAPORE (Aug 3): Consumer electronics manufacturer Hi-P International saw its earnings double to $15.1 million for the 2Q17 ended June, from $7.6 million a year ago.
Revenue dipped marginally by 2.0% to $279.5 million in 2Q17, from $285.4 million a year ago.
However, gross profit surged 64.9% to $34.2 million during the quarter on the back of a 4.9-percentage-point improvement in gross profit margin to 12.2%. Net profit margin doubled to 5.4% in 2Q, from 2.7% a year ago.
In a filing to SGX on Thursday, Hi-P says the growth was driven by a combination of improved operational efficiency and fewer high component content assembly products.
The group reports that is has improved to a net cash position in 2Q17 on the back of strong cash flows generated from operations, compared to a net debt position a year ago.
Other income fell 80.5% to $2.3 million for 2Q17, mainly due to the absence of a pre-tax gain of S$10.5 million from the disposal of an investment in a start-up company last year.
As at end June, cash and cash equivalents stood at $252.9 million.
Hi-P has declared an interim dividend of 19 cents per share for the period.
Looking ahead, the group says it expects stronger sales heading into the second half of 2017.
“Targeted efforts geared towards improving our cash conversion cycle has contributed to a strengthened balance sheet,” says Hi-P executive chairman and CEO Yao Hsiao Tung.
“To ensure the long-term sustainability of Hi-P, we have placed succession planning as a top priority and are developing talented individuals within the organisation,” Yao adds.
Shares in Hi-P closed 9 cents higher at $1.16 on Thursday.
