Valuetronics H2 earnings fall 69.8% as consumer electronics sales falter

[SINGAPORE] Electronics manufacturing services provider Valuetronics ’ net profit fell 69.8 per cent to HK$24.1 million (S$3.9 million) for its second half ended Mar 31, from HK$79.9 million in the year-ago period.

This translated to an earnings per share (EPS) of HK$0.059, a 69.7 per cent decline from HK$0.195.

Revenue stood at HK$823.7 million, down 5 per cent from HK$866.9 million.

The declines came amid lower contributions from the consumer electronics segment, which posted a revenue of HK$84.3 million for H2, a decline of 51.4 per cent from the year-ago period.

Meanwhile, the industrial and commercial electronics segment’s H2 revenue rose 6.6 per cent year on year to HK$739.4 million.

The group proposed a final dividend of HK$0.14 per share and a special dividend of HK$0.16 per share.

Together with the total interim dividends of HK$0.08 per share, which were paid in December, this brings the total dividends declared for FY2026 to HK$0.38 per share.

It marks a 40.7 per cent year-on-year increase from the total dividends of HK$0.27 declared for the previous year, and reflects a dividend payout ratio of 132 per cent for FY2026.

For the full year, net profit fell 31.3 per cent year on year to HK$117.1 million from HK$170.4 million.

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In tanden, FY2026’s basic EPS declined 31 per cent to HK$0.287 from HK$0.416 in FY2025.

Revenue fell 4 per cent to HK$1.66 billion from HK$1.73 billion.

Revised dividend policy

Valuetronics has also raised its dividend policy to a range of 50 to 70 per cent of annual net profit, up from its previous 30 to 50 per cent range.

Additionally, the group announced a programme to return around HK$300 million to shareholders by way of special dividends and a share buyback programme.

This comprises a tranche of around HK$146 million to be returned to shareholders in FY2027, which includes HK$66 million in special dividends in respect of the group’s FY2026 financial results and no less than HK$80 million in share buybacks.

The remaining amount will be allocated to shareholder returns in FY2028.

The programme will be executed between the financial years ending March 2027 and March 2028 and accounts for appropriate allocations for working capital, capital expenditure, liquidity reserves and growth opportunities.

The group’s capital management, including its dividend policy and share buyback programme, will be reviewed periodically, in line with its evolving business strategy, financial position, liquidity requirements, capital needs and market conditions.