Bright Smart net rises
Bright Smart Securities & Commodities (1428) announced a net profit of HK$312 million, up 2.9 percent year-on-year, for the half-year ended September. However, revenue fell nearly 6 percent to nearly HK$450 million.
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Staff reporter
Vitasoy International (0345) said there is still room for its share price to rise but its chairman declined to comment on Ng family's increasing their stake in the beverage maker.
Chairman Winston Lo Yau-lai declined to comment on Philip Ng Chee-tat's intentions after the Singaporean billionaire increased his stake in the company to 11.04 percent earlier this month.
Philip Ng is the younger brother of Sino Land (0083) chairman Robert Ng Chee-siong.
Lo said price adjustments will be made to enhance competitiveness and improve sales amid the competitive ready-to-drink tea market in China.
However, prices in Hong Kong still have an advantage and there is no need for price adjustment, he added.
The company announced a net profit of HK$171 million, a 4.82 percent year-on-year increase, for the six months ended September, thanks to increased operating profit in the mainland and Hong Kong.
The beverage maker declared an interim dividend of 4 HK cents per share, a 190 percent increase from 1.4 HK cents in the same period last year.
Its shares closed 3.3 percent lower yesterday after its announcement.
The interim revenue rose 2 percent from last year to HK$3.44 billion, and operating expenses decreased 2 percent to HK$1.56 billion.
"We are confident in our long-term potential within our exciting product categories. We will work to sustain sales growth and continue to drive operational efficiencies," Lo noted.
The gross profit margin rose from 50.5 percent to 51.6 percent, mainly due to lower commodity prices and production optimization gains. Profit from operations grew by 50 percent year-on-year to HK$257 million, primarily contributed by the mainland and Hong Kong.
China's operating profit grew 15 percent to HK$218 million, while Hong Kong's climbed 44 percent to HK$159 million. However, Australia and New Zealand, as well as Singapore, continued to record operating losses of HK$45.5 million and HK$2.1 million, respectively.
But strong demand was observed in both the Australian and New Zealand markets, with revenue growing 7 percent. Manufacturing issues caused operating loss but have since been resolved and the factory is now operating normally.
The company aims to restore profitability in its beverage business in Singapore by enhancing collaboration with distributors.
Winston Lo says prices in China will be tweaked. SING TAO
