SINGAPORE (Nov 6): Hi-P International saw its earnings jump 24.9% to $38.4 million for the 3Q ended September, from $30.7 million a year ago, on the back of an improved product mix and greater operational efficiency.

Hi-P has recommended an interim dividend of 2 cents per share for the period – a fivefold increase from the interim dividend of 0.4 cent per share declared a year ago.

Gross profit grew 24.7% to $68.1 million as gross profit margin climbed 2.4 percentage points to 16.5%. This was driven by better capacity utilisation, manufacturing yield improvement, and effective cost controls.

The manufacturer of smart phones, tablet computers and other consumer electronics saw its revenue increase 6.2% to $411.3 million in 3Q17, from $387.3 million a year ago.

As at end September, cash and cash equivalents stood at $294.1 million.

Looking ahead, the group says it expects higher sales for 4Q17, compared to at the start of the year.

"We are pleased to have continued our strong turnaround which has resulted in a record quarter in terms of profit,” says Yao Hsiao Tung, Hi-P’s executive chairman and CEO.

“Our strategy of diversifying our customer base continues to gain momentum while we have made strides in margin improvement through enhancing operational efficiency, effective cost controls and boosting productivity. An improvement to capacity utilisation and strong cash flow generation has also contributed to the turnaround,” he adds.

“Backed by our strong foundation and succession planning for the future, I am positive for Hi-P’s future,” says Yao.

Shares of Hi-P closed 14.5 cents higher, or 7.6% up, at $2.06 on Monday.

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