THE rise in popularity of Bluetooth audio speakers has helped Plastoform Holdings lift itself off the Singapore Exchange's (SGX's) dreaded watchlist of loss-making companies.
Plastoform, a Hong Kong-based audio speaker maker, said yesterday that it will exit the SGX watchlist from today. The list is designed to alert investors to underperforming companies.
The company's pleasing rejuvenation came as it reversed an HK$18 million (S$2.9 million) loss in the 2011 financial year to record a profit before tax of HK$3.6 million last year.
In another sign of the company's return to better financial health, Plastoform's average market capitalisation over 120 days was above $40 million. The bottom line and market capitalisation are two key factors determining whether a company is on the watchlist.
"Against all odds, Plastoform has emerged from the SGX watchlist through consistent and unyielding efforts to turn the business around," said executive chairman Michael Tse Kin Man.
Plastoform had pioneered the development of Bluetooth audio speakers from 2010, and now believes that such speakers are in the growth phase of their product cycle.
Plastoform's statement yesterday noted that demand for Bluetooth speakers is growing as the market continues to move away from docking systems, adopting Bluetooth technology in audio products along with the growth in Bluetooth- enabled smartphones and tablets.