Valuetronics Posts 3% Net Profit Growth in Q3 FY2019

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EMS firm Valuetronics Holdings Ltd has reported a net profit of HK$59.7 million for the three months ended 31 December 2018 (Q3 FY2019), by 2.6% compared to the same period in the previous year.

"In Q3 FY2019, we saw changes to our product mix with CE revenue decreasing, which was partially offset by increasing ICE revenue. This led to a slight increase in our net profit to HK$59.7 million," said Ricky Tse Chong Hing, chairman and managing director of Valuetronics.

The group's revenue decreased by 7.5% from HK$788.3 million for the three months ended 31 December 2017 (Q3 FY2018) to HK$729.6 million in Q3 FY2019.

In Q3 FY2019, the CE segmental revenue decreased by 26.4% year-on-year to HK$295.2 million. The decrease was mainly due to the slowdown in demand of smart LED lighting products.

The ICE segmental revenue grew by 12.2% to HK$434.4 million in Q3FY2019, with the increase attributed to the increase in demand from some ICE customers such as printers and in-car connectivity modules used in the automotive industry.

The Group’s gross profit for Q3 FY2019 increased by 1.8% to HK$115.8 million year-on-year. Gross profit margin increased to 15.9%, up from 14.4% in Q3 FY2018, as a result of the change in product sales mix during the period under review.

The Group’s other income remained stable at HK$5.3 million in Q3 FY2019.

Selling and distribution expenses decreased by 10.2% to HK$10.9 million, mainly due to the decrease in logistics expenses as a result of a lower revenue. Administrative expenses increased by 10.3% to HK$43.7 million, which was mainly due to the increase in staff cost.

As a result of the above, the Group’s net profit in Q3 FY2019 grew by 2.6% year-on-year to HK$59.7 million.