Valuetronics FY2020 net profit falls 10.3% to HK$178.9m on lower revenue

VALUETRONICS Holdings posted a 10.3 per cent drop in net profit to HK$178.9 million (S$32.3 million) for its full year ended March 31, 2020, from HK$199.5 million a year ago.

 

This came as the mainboard-listed electronics manufacturer recorded lower revenue for both its industrial and commercial electronics segment and consumer electronics segment.

 

Earnings per share stood at 41.2 Hong Kong cents for the year, down from 46.2 cents a year ago, according to the group' s results released on Wednesday.

 

Revenue for the full year fell 16.8 per cent to HK$2.35 billion, from HK$2.82 billion a year ago. A slowdown in demand from customers was the main reason for Valuetronics' industrial and commercial electronics revenue falling 13.7 per cent to HK$1.44 billion, while consumer electronics revenue declined 21.1 per cent to HK$916 million.

 

A final cash dividend of 14 Hong Kong cents per share has been recommended for the full year, compared with 15 cents a year ago. The group had paid an interim dividend of six cents in December 2019, bringing the total dividend amount to 20 cents for FY2020, compared with 25 cents for FY2019.

 

The date on which the dividend will be paid out will be announced at a later time.

 

On its outlook, Valuetronics said it is encountering the " toughest business environment in its operating history" . 

 

It added that its outlook for FY2021 is " highly uncertain" as the group is facing an unprecedented crisis affecting the entire world amid the backdrop of the Covid-19 pandemic and Sino-US trade tensions.

 

Although a series of precautionary and control measures for lowering operating costs are being carried out to mitigate the impact, Valuetronics said its FY2021 financial results are expected to be significantly lower compared with FY2020.

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