Plastoform

Plastoform: 3Q12 results showed positive turnaround. Revenue at HK$151.8m, +96% yoy, mainly due to increased shipment as a result of continued success in penetrating the wireless speaker market. Gross profit expanded significantly to HK$26.1m, from HK$1m yoy, as margins widened due to economies of scale, new pdts developed in 1H12 launched to markets in 3Q12 and tighter cost control on pdtn overheads and admin expenses. Net profit at HK$16.7m, vs HK$4.2m net loss yoy. Mgt disclosed a healthy order book in excess of HK$150m Looking ahead mgt will continue to build and introduce new Bluetooth pdts in new mkt segments. Says it is well placed to finish FY12 on a strong positive note, noting that the group is moving into 4Q12 which is traditionally the holiday gifting season for the consumer electronics sector. Expects to exit from the SGX Watchlist in Mar 2013. The stock trades at 28.5x annualized 9M12 P/E (due to losses in 1H12), 2.7x P/B. Plastoform is an original design manufacturer (ODM) of consumer electronics pdts, with a focus on audio devices. Its latest key product is the portable wireless Bluetooth speaker.