COMPUTIME GROUP LIMITED ANNOUNCES FISCAL YEAR 2017 ANNUAL RESULTS

COMPUTIME GROUP LIMITED ANNOUNCES FISCAL YEAR 2017 ANNUAL RESULTS

HONG KONG, 29 June 2017 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320), today announced its audited consolidated results for the year ended 31 March 2017 (“FY2017”).

Financial Highlights:

Year ended 31 March 2017

  • Revenue was HK$3.68 billion, an increase of 4.6% from HK$3.52 billion in FY2016
  • Net Profit was HK$126.4 million, an increase of 29.4% from HK$97.7 million in FY2016
  • Gross Margin was 14.7%, compared to 13.2% in FY2016
  • Earnings Per Share were HK$0.151, compared to HK$0.117 in FY2016

 

Revenue for the year ended 31 March 2017 increased by 4.6% to HK$3.68 billion, setting a new record for the Company, while net profit rose to HK$126.4 million. Both of these measures highlight the Company’s strong profit and growth momentum over the last five years, with compound annual growth rates (“CAGR”) of 9.9% for revenue and 42.0% for net profit.

Net operating cash flow was HK$368.7 million, while cash and cash equivalents rose to HK$771.9 million, up from HK$544.4 million as of the end of FY2016.

Profit attributable to owners of the Company rose to HK$126.4 million, up 29.4% from HK$97.7 million in FY2016. Basic earnings per share rose to HK$0.151, up 29.1% from HK$0.117 in FY2016.

The Board of Directors proposed a final full-year dividend of HK$0.075 per ordinary share, an increase of 29.3% from the HK$0.058 per ordinary share declared in FY2016.

Segment Results

During the year, the Company continued to grow its higher margin businesses, with Commercial and Industrial Controls (“CIC”) recording revenue of HK$636.8 million, up 11.5% year-over-year, and Building and Home Controls (“BHC”) with revenue of HK$1,492.2 million, an increase of 16.3%. Revenue from the Appliance Controls (“APC”) segment dropped 6.8% to HK$1,554.7 million.

SALUS, Computime’s line of branded intelligent home-control products and part of its BHC business segment, was a main focus of growth during FY2017. During the year, the Company expanded sales channels for SALUS in Europe, while also invested heavily in launching new products in North America. Sales in all SALUS Europe locations experienced double digit percentage growth during the year except in the United Kingdom, which was negatively impacted by the market downturn caused by Brexit. Overall, revenues for the SALUS segment, when adjusted for the effect of foreign exchange, recorded a 5% growth in FY2017 and achieved a 5-year CAGR of 15%.

Outlook

Computime will focus on growing its CIC and BHC segments and improving the profitability of APC. Computime is evolving from a traditional OEM manufacturer into a technology-driven solutions provider for our EMS customers. At the same time, the Company will invest in its SALUS segment through new distribution channels and new product introductions focused in the smart home devices area.

Looking ahead to FY2018, Computime expects the macro environment to remain challenging as geopolitics and other factors impact the global economy. However, the Company is confident that it can leverage its core capabilities in electronic controls and wireless technologies, its proven track record, and its trusted brand name to seize market opportunities and introduce high value products and services to its partners and customers worldwide.

Dr. King Owyang, CEO and Executive Director of Computime, commented, “Our business performance demonstrated strong growth momentum and healthy profitability in FY2017. Increasing levels of higher value-added business, automation, and cost reduction contributed to our improved profitability. During the year, we focused on developing new technologies to enhance our EMS design capabilities, which have proven to be a hit with our EMS customers. Separately, we have launched a number of leading edge products within our SALUS intelligent home control system which will become key growth drivers for this business, especially in the European and US markets.”

“EMS continues to be the backbone of Computime, but our growing SALUS segment will also be a key growth driver for the Company in the future. We believe there is huge market potential in Europe and North America for connected devices as consumers adopt the Internet-of-things (“IoT”), which is an area our SALUS brand is focusing on. We expanded the distribution of SALUS into new territories throughout FY2017, including the US and Canada. We will be investing in R&D to grow our technological capabilities, and we are confident that our creative engineering will allow Computime to capitalize on growth opportunities and cement our leadership in the global EMS and IoT markets.”

Mr. Matthew Au, CFO of Computime, added, “We are pleased to have achieved another year of record breaking financial performance. Our revenue and net profit have steadily improved over the last five years, with a CAGR of 9.9% and 42.0% respectively. Our profitability also improved, as our better mix of higher margin businesses and cost reduction initiatives contributed to a gross margin of 14.7% for FY2017. In terms of cash, we are in a stable and healthy position. Our net operating cash flow of HK$368.7 million drove our cash and cash equivalents to a record HK$771.9 million, while we kept debt to HK$264.9 million, compared to HK$266.9 million in FY2016.”

Mr. Ho Auyang, Chairman and Executive Director of Computime, concluded, “The management, board and myself are very pleased with our FY2017 financial results. Throughout the four decades of Computime’s history, we have worked hard to stay ahead of the curve, and this year was no exception. We are transforming ourselves into a technology-driven company, which we believe is essential to Computime’s future strategy and execution.”

About Computime Group Limited (http://www.computime.com/investors/)
Computime is a global technology and manufacturing company headquartered in Hong Kong, with 12 offices in strategic locations around the world. Over the past 40 years, Computime has worked with global brands to produce design and manufacturing solutions, as well as developing innovative products under its own brand name. Offering much more than standard manufacturing services, Computime has established a broad portfolio of solutions, including bespoke IP and sophisticated R&D to accelerate time-to-market. Computime also designs and manufactures industry-leading connected products under its SALUS brand. Computime has positioned itself at the forefront of technology, and is emerging as a market leader in the design and manufacturing of Internet of Things (IoT) and home automation products.

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For further enquiries, please contact 


Computime Group Limited
Investor Relations Department
Email: ir@computime.com

Christensen China Limited
Jung Chang
Phone: 852-2117 0861
Mobile: 852-9226 6258
Email: jchang@christensenir.com

Brian Hon
Phone: 852-2117 0861
Mobile: 852-6114 3457
Email: bhon@christensenir.com



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