Karin to Achieve ‘Double-Digit’ Profit Growth With New Ventures

Karin Technology Holdings Ltd., a supplier of semiconductors for products including Mattel Inc.’s Tickle Me Elmo dolls, targets “double-digit” profit growth in the coming 12 months with new manufacturing ventures.

The company is developing new wireless and liquid-crystal display products and is targeting new customers, Financial Controller Clarence Wong said in an e-mailed reply to queries.

“Economic growth in certain developing countries does help to maintain the demand for certain electronic components,” he said today. “These are the backing for a cautiously optimistic growth outlook for the next financial year.”

Karin’s profit for the year ending June 2010 rose 4.5 percent to HK$33.8 million ($4.3 million), the Hong Kong-based manufacturer said last week. It’s setting up a factory in the southern Chinese city of Shenzhen that will design electric meters and other power-related supplies.

The company, whose shares trade in Singapore, is also in the “primitive stages” of forming a manufacturing partnership with a Japanese customer in China, Executive Chairman Philip Ng said on Aug. 25, declining to give more details ahead of an announcement.

“We try to maintain shareholder interest, rather than just aim for more business at high risk,” Ng said. “The company targets better margins instead of just higher revenues.”

Karin will also expand its security products to information technology service providers. It’s currently supplying application software to Seattle-based F5 Networks Inc. and RSA Security Inc., part of Hopkinton, Massachusetts-based EMC Corp.

Karin has gained 2.4 percent in Singapore stock exchange trading this year. The stock was unchanged at 21.5 Singapore cents as of 2:26 p.m.

To contact the reporter responsible for this story: Kristine Aquino in Singapore at kaquino@bloomberg.net

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