Valuetronics net profits climbs to $31.88m for FY2021
This marks a 4.6% increase from $30.48m last year.
SGX-listed electronics manufacturing services company Valuetronics reported an increase of 4.6% to $31.88m (HK$187.1m) for the financial year ended 31 March.
The group reported relatively stable revenue and profits for FY2021 as compared to FY2020, largely due to an unexpected rebound in customer demand in the second half of FY2021.
Industrial & Commercial Electronics revenue increased by 11.3% from $245m (HK$1.43b) in FY2020 to $272.64m (HK$1.6b).
The surge in demand for logistics and e-commerce benefited several key customers during COVID- 19 pandemic lockdowns. The prolonged COVID-19 pandemic also caused a delay in the schedule of a customer in the auto industry with regard to its production switch-over from the Group’s China factory to another vendor in North America, which led to continued orders from that customer in FY2021.
Meanwhile, Valuetronics’ Consumer Electronics segment decreased by 25.7% to $115m (HK$680.7m) from $156m (HK$916m) in FY2020. The significant drop was due to a key customer experiencing weak demand as a direct result of reduced activity caused by social distancing and COVID-19 containment measures, and its scheduled production switch-over from the Group’s China factory to another vendor in an ASEAN country.
Valuetronics’ chairman and managing director Ricky Tse Chong Hing said the group is expecting a significantly lower financial results for FY2022 compared to FY2021 on the back of loss of orders from customers switching their supply chain to other countries due to Sino-US trade tensions, compounded with the uncertainties resulting from the global components shortage and evolving COVID-19 pandemic.
“On the other hand, our Vietnam expansion is proceeding according to schedule during the year. We are targeting the new Vietnam campus to commence production by the end of FY2022. By then, we will be fully equipped to serve customers’ multi-site production strategy as a means to mitigate Sino-US trade tensions, and we will be seeking out new opportunities emerging with our extended geographic footprint,” the chairman said.
The Company is recommending a final dividend of HK$16 cents per share for FY2021.