23/11/2017 COMPUTIME GROUP LIMITED ANNOUNCES 1H FY2018 RESULTS
HONG KONG, 23 November 2017 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320), today announced its unaudited condensed consolidated results for the half year ended 30 September 2017 (“1H FY2018”).
Six months ended 30 September 2017
- Revenue was HK$1,911.8 million, an increase of 12.0% from HK$1,707.6 million in the half year ended 30 September 2016 (“1H FY2017”)
- Net Profit was HK$53.6 million, an increase of 27.5% from HK$42.1 million in 1H FY2017
- Gross Margin was 14.6%, compared to 13.7% in 1H FY2017
- Earnings Per Share were HK$6.41 cents, compared to HK$5.04 cents in 1H FY2017
Computime continued to record strong growth momentum in the first half of fiscal 2018, as revenue increased to HK$1,911.8 million, while net profit rose to HK$53.6 million. Gross profit margin also improved, rising to 14.6% in 1H FY2018.
The Company maintained a healthy cash and cash equivalents balance at the amount of HK$754.4 million, compared to HK$771.9 million as of the end of the financial year ended 31 March 2017.
Net profit rose to HK$53.6 million, up 27.5% from HK$42.1 million in 1H FY2017. Basic earnings per share rose to HK$6.41 cents, up 27.2% from HK$5.04 cents in 1H FY2017.
During the first half of fiscal 2018, the Company continued to grow its higher margin businesses, with Commercial and Industrial Controls (CIC) recording revenue of HK$383.3 million, up 45.3% year-over-year, and Building and Home Controls (“BHC”) with revenue of HK$779.1 million, an increase of 25.4%. Revenue from the Appliance Controls (APC) segment dropped 8.9% to HK$749.3 million.
Within the BHC segment is Computime’s own line of heating control products and new Internet of Things (“IoT”) suite of smart devices. Marketed under the brand name SALUS, this business recorded healthy growth during 1H FY2018 when compared to 1H FY2017 in all European territories with the exception of the United Kingdom (“UK”) due to Brexit concerns. Despite this setback in the UK, the SALUS business as a whole was able to match last year’s sales in local currency terms during 1H FY2018.
In the second half of fiscal year 2018, Computime expects the demand for its products and services to remain strong, driven by orders from both existing and new customers. The Company expects to commence shipments to a new EMS (Electronic Manufacturing Services) customer in the consumer products sector in the second half, while orders from an existing customer in the mobile point-of-sale (mPOS) sector is expected to progressively ramp up. In addition, Computime expects sales of SALUS in this fiscal year will increase on a year-on-year basis with new product launches including the Auto Balancing Actuator (ABA), new market initiatives in the UK, and sales ramp up in North America in the second half.
Dr. King Owyang, CEO and Executive Director of Computime, commented, “We continued to build on our strong growth momentum in the first half of fiscal 2018, driven by a better mix of higher margin businesses. While EMS continues to be the backbone of the Company, Computime has continued to transition from a traditional manufacturer into a value-added technology driven company, and as part of this, we have made a conscious effort to grow our more profitable segments, while being more selective in engaging lower margin businesses. This, alongside our ongoing cost control and operational efficiency improvements, have contributed to our tangible improvement in profitability.
During 1H FY2018, we took advantage of our strong results to make further investments for long term growth. We purchased two new SMT (surface-mount technology) lines to upgrade our manufacturing capabilities, invested in further growing our sales and marketing capabilities in the EU and North American markets for our SALUS brand, and increased research and development (“R&D”) spending.
We remain committed to growing our higher-margin businesses alongside our SALUS brand, and we are on track to deliver solid growth for the full fiscal year. We will continue to seize various opportunities in both the EMS and IoT markets to achieve sustainable, long-term growth.”
Mr. Matthew Au, CFO of Computime, added, “We are pleased to have recorded another solid performance for 1H FY2018. Both revenue and net profit achieved positive year-on-year growth of 12.0% and 27.5% respectively to HK$1,911.8 million and HK$53.6 million in 1H FY2018. Our better mix of higher margin businesses and cost reduction initiatives allowed us to achieve an improved gross margin of 14.6%, compared to 13.7% in 1H FY2017.
Our cash flow remained strong despite continuing investments into our business. Our net working capital cycle improved from 69 days in the first half of last year to 60 days this year. Our cash position remains healthy, with cash and cash equivalents of HK$754.4 million as at the end of 1H FY2018.”
About Computime Group Limited (http://computime.wpengine.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 IoT and home automation products.
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For further enquiries, please contact
Computime Group Limited
Investor Relations Department
Christensen China Limited
Phone: 852-2117 0861
Mobile: 852-6114 3457
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