Hong Kong based but Singapore-listed manufacturer Valuetronics Holdings has reported FY2026 revenue of HK$1.66 billion, down 4% over the preceding year.
However, because of an impairment, earnings for the same year to March 31 was down 33.1% to HK$111.4 million.
Specifically, the impairment is related to the company's investments in GPUs and related ancillary hardware assets under equipment leasing arrangements to an associate company, Trio AI, in which it holds 26.6%.
As Trio AI failed to gain sufficient commercial traction, Valuetronics will reassess this business and explore options to recover value investments made.
Despite the lower bottom line, the company is soothing shareholders with a final dividend of 14 HK cents, plus a special dividend of 16 HK cents, as part of the HK$300 million capital return programme.
This will bring its total FY2026 payout to 38 HK cents, equivalent to a payout ratio of 132%. For the preceding FY2025, the company paid 27 HK cents.
Valuetronics, as at March 31, has no debt and maintains a cash and equivalent of HK$1.2 billion, an improvement from HK$1.09 billion as at March 31 2025.
The company has launched a HK$300 million capital return programme to return surplus cash.
As part of this, Valuetronics has revised its dividend policy from 30% to 50% of the earnings to 50% to 70%.
Ricky Tse Chong Hing, the company's chairman and managing director, calls this capital return a reflection of Valuetronics' commitment to delivering sustainable shareholder value through a disciplined and balanced capital management approach.
Going forward, Valuetronics warns that the operating environment remains fluid and uncertain, with tariffs and ongoing tensions in the Middle East.
At the same time, strong demand for components used in AI infrastructure has continued to absorb semiconductor manufacturing capacity, which may affect the cost and lead time of conventional component supplies.
Valuetronics expects to remain profitable in FY2027.
Valuetronics shares closed at $1.01 on May 26, down 0.98% for the day, and is up 17.44% year to date.
