HI-P INTERNATIONAL is paying a first and final dividend of 1.0 cents per share, representing a payout ratio of 78.1%.
FY2014's dividend per share is 67% higher than the 0.6-cent paid for FY2013.
The global contract manufacturer posted an increase in net profit attributable to shareholders of 63.6% year-on-year to reach S$10.5 million. It was boosted by a fire insurance claim and a gain from the liquidation of Hi-P Mexico.
In FY2013, its profitabiliy was hurt by impairment losses due to the consolidation and relocation of its plant from Tianjin to Suzhou, as well as a fire in a manufacturing plant in Shanghai.
FY2014 revenue was S$951.4 million, 24.6% lower than a year ago mainly due to a decline in orders from two key customers as a result of the drop in their market demand and changes in business direction.
"FY2014 was below our expectations, but we have made crucial changes that position us for future growth," said CEO Yao Hsiao Tung at the Group's results briefing at Fullerton Hotel on Friday (Feb 13).
"Our restructuring to transit from focusing on high precision plastics components to metal takes about 12 to 14 months and we are almost done," said deputy CEO El Tay.
"We have improved technology by acquiring CNC equipment to enhance operational efficiency and develop more business for metal components," added Mr Yao.
"We also intend to expand our ODM business into wireless, lifestyle and medical segments," he said.
The Group invested S$113.9 million in capital expenditure in FY2014.
Details on its financial results can be found here.
The following is a summary of questions raised by analysts and fund managers at the results briefing, and the answers provided by Mr Yao, Mr Tay, COO Gary Ho and CFO Samuel Yuen.