- Valuetronics’s 1HFY25 net profit of HK$91m (+17% h-o-h, +10% y-o-y) is largely in line with our expectations, making up 53% of our full-year forecast.
- Revenue dipped 3% y-o-y to HKS$862m, as a result of weak demand from some existing industrial and commercial electronics (ICE) and consumer electronics (CE) customers. Gross profit improved 4% y-o-y to S$145m, while higher interest income of S$30m (+18% y-o-y) led to net margin expanding 1.3ppt y-o-y.
New customer contributions largely offset weaker existing customer demand.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Gross margin expansion for the fourth consecutive half-year period.
- Gross margin continued to improve for the fourth consecutive half-year period to 16.8% (+0.6ppt h-o-h, +1.2ppt y-o-y). This was driven by:
- higher-margin new products,
- lower labour costs and manufacturing overheads from the depreciation of the renminbi, and
- lower material costs from an improvement in the component supply chain.
Interim dividend maintained.
- Read more at SGinvestors.io.
