Valuetronics profits up 65% to $8.5m

Its consumer electronics segment almost doubled.

Electronics firm Valuetronics (VALUE) posted a 65% YoY profit growth to $8.5m (HK$48.7m) in its first fiscal quarter.

According to KGI, revenue also increased 46% $121.2m (HK$695.7m), largely thanks to the 92% and 21% growth of its Consumer Electronics (CE) and Industrial and Commercial Electronics (ICE) segments.

The adoption of smart LED lighting products with Internet of Things (IoT) boosted the company's performance, KGI said.

VALUE supplied smart LED lighting products for a key Dutch MNC company that operates globally.

Inventory growth pulled up its CE sales, on the back of the transition from conventional to smart lighting products.

Here's more from KGI:

VALUE has started to supply in-car connectivity modules to automaker customers since FY2016 and continues to see increasing demand for connectivity modules used in the automotive industry and printers. The group has also been recently qualified by another automaker and management is positive on continued growth on ICE demand from existing and new customers going forward.

Management cited possible challenges in securing the necessary raw materials and components to support expanded production orders due to strong demand in the overall industry. So far no supply constraints that had deterred productions has occurred and management is confident of sustaining current growth ahead.