TPV Profit Jumps 170% on Flat-Panel Television Sales

TPV Technology Ltd., the world’s biggest contract manufacturer of computer monitors, said first-quarter profit rose 170 percent as the company increased sales in its flat-panel television division.

Net income climbed to $40.2 million, or $1.73 cents a share, from $14.9 million, or 0.72 cents, a year earlier, TPV said in a statement to Hong Kong’s stock exchange today. Sales increased to $2.39 billion from $1.38 billion.

TPV, a supplier to customers including Royal Philips Electronics NV and Sharp Corp., set up television plants in Poland and Mexico to expand production. The company, listed in Hong Kong and Singapore, faces rising competition in the computer screen market from rival Chimei Innolux Corp.

“The TV division should be the growth driver for TPV this year,” Dennis Lam, who rates TPV shares “buy” at DBS Vickers Ltd. in Hong Kong, said before the earnings announcement. “The financial crisis in Europe can hurt demand for consumer electronics, and that is a concern for TPV.”

TPV shares rose 8.2 percent to HK$4.86 in Hong Kong trading on June 3 before the earnings announcement. The stock has gained 1.7 percent this year, compared with the 9.5 percent increase by the city’s benchmark Hang Seng Index.