Valuetronics announced that its earnings for 1HFY2023 ended September came in at HK$57.9 million ($10.2 million), a 2.2% increase from HK$56.6 million a year ago.
This came on the back of revenue increasing by 3.6% y-o-y to HK$1.1 billion.
Industrial and Commercial Electronics revenue increased by 15.9% y-o-y to HK$805.5 million, mainly contributed by the increase in demand from some of the group’s industrial and commercial electronics customers.
Consumer Electronics revenue decreased by 23.0% to HK$246.0 million, mainly due to the softening demand in end-markets.
The group’s gross profit margin also decreased from 14.2% to 12.5%, eroded by higher component prices due to tight supply, and the Covid-19 lockdowns of major cities in China which disrupted supply chains and impacted productivity.
Cash and cash equivalents for the end of the period stood at HK$979.3 million.
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The group declared an interim dividend of 4 HK cents per share, unchanged from the same period a year ago.
On the outlook, chairman and managing director Ricky Tse Chong Hing says: “All our facilities in Vietnam are now fully consolidated at our Vietnam campus and this allows us greater operational efficiencies and economies of scale. As more customers are now able to visit our Vietnam campus with global travel resuming, we are confident that we will be able to convert these leads to new business in FY2024. Nevertheless, we are still facing multiple headwinds such as the Russia-Ukraine conflict, rising geopolitical tensions, hiking interest rate, dampening business sentiment and consumer spending.”
“Our strong fundamentals in terms of our manufacturing experience and capabilities in different countries, strong cash flows, and robust balance sheet with zero debt, will help us weather the challenges ahead and put us in a good position to also capture emergent opportunities,” he adds.
Shares in Valuetronics last traded at 49 cents.
