Valuetronics Holdings posted net profit attributable to shareholders of HK$93.0 million for the six months ended 30 September 2025, up 2.7 per cent year-on-year, as a deliberate pivot to higher-margin products offset a 3.0 per cent contraction in revenue to HK$836.6 million.

Earnings per share rose to 22.9 Hong Kong cents from 22.1 cents a year earlier. The board declared an interim dividend of 4.0 Hong Kong cents and a special interim dividend of the same amount, bringing total first-half payouts to 8.0 cents per share. The company did not disclose payment dates. The dividend represents a 35.0 per cent payout of first-half attributable profit.

Segmentally, Industrial & Consumer Electronics (ICE) revenue increased 5.7 per cent YoY to HK$706.7 million, buoyed by contributions from new customers in network-access and high-performance computing cooling solutions. Consumer Electronics (CE) sales fell 32.8 per cent to HK$129.9 million as Valuetronics accelerated the exit of low-margin legacy lifestyle products, a process it expects to finish by the end of FY2026. Group gross profit climbed 8.6 per cent to HK$157.3 million, while the margin improved two percentage points to 18.8 per cent. Operating profit before interest income grew 14.5 per cent to HK$73.8 million.

The sharp drop in CE revenue and a 30.3 per cent decline in interest income to HK$21.1 million tempered overall growth. Lower US interest rates and subdued demand for traditional consumer products weighed on the top line.

Management is concentrating on customer diversification and product-mix optimisation. Recent wins in network-access and cooling-solution contracts are expected to underpin the ICE segment, while the planned wind-down of legacy CE items aims to enhance margins. The group is also leveraging its Vietnam facility to mitigate geopolitical and tariff risks, complementing its established China operations. A HK$250 million share-buyback mandate, initiated in February 2022, saw HK$14.3 million deployed to repurchase 4.1 million shares during the half.

Chairman and managing director Ricky Tse said the first-half results underscore the effectiveness of shifting toward higher-margin offerings. He noted that, although revenue slipped, the improved sales mix lifted profitability and positioned the company for “growth from new customers that offer modern-tech products”. Tse added that, barring major macroeconomic disruptions, Valuetronics expects to remain profitable for FY2026 as it navigates ongoing inflationary and geopolitical challenges.