Bright World Precision Machinery posts 67.3% rise in 1Q net profit to $8.6m

Mainboard-listed Bright World Precision Machinery, the manufacturer of precision stamping equipment in China, says net profit surged 67.3% year-on-year to RMB45.7 million ($8.6 million) for the 3 months ended 31 March 2011 (1Q2011).

The much improved performance was built upon a 57% y-o-y jump in revenue to RMB293.6 million in 1Q2011, as the group experienced increased demand for both its high-performance & high-tonnage and conventional stamping machines.

In particular, a continued ramp-up of its high-performance & high-tonnage stamping machines saw the segmental sales increase by 63.6% y-o-y, compared to a 49.4% y-o-y increase for conventional machines.

In light of the upward adjustment of selling prices and shift in sales mix to high-performance & high-tonnage machines, the group’s gross profit margin increased by 1.6% to 28.9% in 1Q2011 from 27.3% in 1Q2010. Gross profit margins for conventional stamping machines increased to 26.5% in 1Q2011 from 22.8% in 1Q2010, while gross profit margin for high-performance & high- tonnage stamping machines increased marginally to 30.2% in 1Q2011 from 29.5% in 1Q2010.