Interplex's net profit jumped 185% to US$12m in Q1

Thanks to chunky forex gains.

Interplex Holdings reported that its net profit nearly tripled to US$11.97m in the first quarter, thanks mainly to a one-off acquisition cost and hefty forex gains.

Revenue grew modestly at 4% year-on-year. Its automotive segment grew 31% on-year to US$67.4m thanks to new launches and growth in North American and European sales, while its telecommunications segment surged 62% to US$18.9m.

However, its consumer electronics and mass storage segments declined on back of weak end-market demand.

Analysts at DBS expect Interplex's revenue growth to remain modest, but believes that cross-selling and cost-cuts should lift margins and boost earnings.

"With the potential for further automation and in-sourcing of some of Interplex Industries’ processes, we expect net margins to improve from 4.5% in FY15 to 6.1% in FY18, which could grow earnings by 52% to US$61.4m in FY18," said the report.