SINGAPORE (Feb 23): Hi-P, the global contract manufacturer of smart phones, tablets and other consumer electronic devices, swung back to profitability in both the 4Q and FY16 ended Dec.
For 4Q, Hi-P recorded earnings of $28.5 million on the back of $356.8 million in revenue. Full-year earnings came in at $54.5 million on the back of $1.3 billion in revenue which was 4.2% lower compared to a year ago.
In April 2016, the group announced the disposal of an investment in a startup company which led to a pre-tax gain of $10.5 million. As a result, the group’s other income increased 56.8% to $18.2 million for FY16.
In line with management’s focus on tightening cost controls, the group’s total selling, distribution and administrative expenses declined 6.7% to $90 million. Similarly, other expenses decreased 42.6% to $9.8 million for FY16. This was attributed to a lower allowance on non-cancellable purchase commitments coupled with lower property, plant and equipment written off.
CEO Yao Hsiao Tung said, “In the year ahead, our efforts are focused on business development in order to grow our revenue. However, the worldwide situation is full of uncertainties and we are beginning to see an increase in competition which could impact many companies.”
The group is recommending a final dividend of 0.4 cent, bringing total dividend for FY16 to 0.8 cent, up from 0.6 cent in FY15.
Shares of Hi-P closed 1 cent higher at 52 cents before the results announcement.
