In addition, higher interest rates allowed Velutronics to earn higher interest income.
As at Sept 30, the company remains debt-free and has maintained cash and equivalents at HK$1.17 billion, contributing to a net asset value of HK$3.5 per share.
The company says that the better earnings in the face of lower revenue is a mark of the success of its new strategic focus and winning over a key new customer that can help generate better margins, says chairman and managing director Ricky Tse Chong Hing.
"Notably, there was encouraging revenue contribution from our new Canada-based ICE customer that we acquired in FY2024," he adds.
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"Together with other new customers acquired in the past two years, these revenue streams offset reduced demand from a CE customer that is focused on traditional consumer lifestyle products," says Tse.
The company plans to pay an interim dividend and a special dividend of four cents each. The eight cents in total is equivalent to a payout ratio of 36% for 1HFY2025.
Valuetronics closed at 64 cents on Nov 12, up 1.6% for the day.
