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Several brokerage houses said yesterday that the company's second-quarter results would be the best among listed makers of electronic products. They plan to revise upward SVI's forecast operating results for the full year.

According to a filing to the Stock Exchange of Thailand yesterday, the company's earnings increased by 28 per cent from the same quarter last year, due to higher revenue, which rose by 38 per cent.

Gross profit in the quarter was Bt215 million, rising by 12 per cent from the same period last year, because of lower materials costs related to some imports being purchased during the baht's appreciation in the first three months of the year.

For the first half, SVI booked net profit of Bt253.83 million, an increase of 60.85 per cent from the same period last year.

According to Kim Eng Securities' research, SVI's normalised profit of Bt130 million in the second quarter - up 77 per cent from the same period last year - was 29 per cent higher than the broker's previous estimate. Kim Eng puts the excellent performance mainly down to good cost management.

Kim Eng said the industry outlook for electronics-equipment production and exports in the second half was still good, in line with seasonal factors. Therefore, the broker is likely to revise the revenue and earnings for SVI upward after an analysts' meeting on Thursday.

Kiatnakin Securities said SVI's performance in 2008-2009 is expected to grow by 15 per cent on average. Its earnings next year are forecast to increase by 20 per cent to Bt465 million, thanks to the expansion of a third Thai plant. The expansion will increase the firm's capacity to US$500 million (Bt16.77 billion) of production, from the present level of $180 million.

Kiatnakin and other brokerage houses including Trinity Securities will also revise SVI's operating results upward.