11 International Business Park Jurong East Singapore 609926
Tele: (65) 6268 5459 Fax: (65) 6564 1787 www.hi-p.com
Hi-P reports 3Q2011 revenue of S$308.6 million and net profit of S$6.5 million• 3Q2011 revenue increased 34.2% qoq and 8.1% yoy mainly due to more high level assembly
• Gross profit margin fell to 8.7% qoq from 13.2% due to pricing pressure, change in product mix, increased labor costs, consolidation costs and higher depreciation
• Management expects higher net profit in 4Q2011 versus 3Q2011 as certain delayed programs start production
Singapore - 01 November 2011, SGX Mainboard-listed Hi-P International Limited (Bloomberg
Ticker: HIP SP, "Hi-P", "
" or "the Group"), a global integrated electro-
mechanics manufacturing solutions provider for wireless
communications and consumer electronics, has announced its
financial results for the 9 months ended 30 September 2011
("3Q2011"). With the Group entering the seasonally busier
second half for consumer electronics, 3Q2011 revenue
increased by 34.2% to S$308.6 million quarter-on-quarter
(qoq) mainly due to more high level assembly.
(S$'000) | 3Q2011 | 2Q2011 | % Change | 3Q2011 | 3Q2010 | % Change |
Revenue Gross Profit Gross Profit Margin (%) Profit After Tax Net Profit Margin (%) Earnings per share (Sing Cents) | 308,567 | 229,917 | 34.2 | 308,567 | 285,505 | 8.1 |
Revenue Gross Profit Gross Profit Margin (%) Profit After Tax Net Profit Margin (%) Earnings per share (Sing Cents) | 26,697 | 30,235 | (11.7) | 26,697 | 64,594 | (58.7) |
Revenue Gross Profit Gross Profit Margin (%) Profit After Tax Net Profit Margin (%) Earnings per share (Sing Cents) | 8.7 | 13.2 | n.m | 8.7 | 22.6 | n.m. |
Revenue Gross Profit Gross Profit Margin (%) Profit After Tax Net Profit Margin (%) Earnings per share (Sing Cents) | 6,461 | 11,219 | (42.4) | 6,461 | 33,198 | (80.5) |
Revenue Gross Profit Gross Profit Margin (%) Profit After Tax Net Profit Margin (%) Earnings per share (Sing Cents) | 2.1 | 4.9 | n.m | 2.1 | 11.6 | n.m. |
Revenue Gross Profit Gross Profit Margin (%) Profit After Tax Net Profit Margin (%) Earnings per share (Sing Cents) | 0.76 | 1.31 | (42.0) | 0.76 | 3.83 | (80.2) |
3Q2011 revenue increased by 8.1% year-on-year (yoy) to
S$308.6 million mainly due to more high level assembly.
Delays in the ramping of certain programs by customers in
3Q2011 contributed to a lower than expected top line
growth.
Gross profit decreased by 58.7% to S$26.7 million mainly due
to pricing pressure, higher material costs due to change in
product mix, increased labour costs, additional costs due to
activities arising from sites' consolidation and higher
depreciation of S$2.2 million due to a change in accounting
estimate pertaining to useful life of certain Property, Plant
and Equipment. Labor costs increased in 3Q2011 as a result of
increased revenue, headcount and wages.
Total selling & distribution and administrative expenses
decreased by 16.4% yoy to S$18.4 million mainly due to
reversal of doubtful receivables of S$0.9 million and lower
bonus provision. Net interest income increased by 88.6% yoy
to S$0.9 million due to higher amount of CNY fixed deposits
which earns higher interest rate and partially offset by
increased USD bank borrowings. Net other expenses decreased
by 89.0% yoy to S$0.5 million mainly due to minimal provision
for impairment loss of fixed assets. (3Q2010: S$4.4
million)
Income tax expense decreased by 58.5% yoy to S$2.3 million
but effective tax rate increased to
26.6% (3Q2010: 14.5%) mainly due to lower profits and higher
income tax rates for our PRC
subsidiaries.
As a result of the above factors, the Group achieved net
profit after tax of S$6.5 million in
3Q2011.