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Enviro-Hub back in the green with earnings of $0.7 million in 1H21

Amala Balakrishner
Amala Balakrishner8/6/2021 08:23 PM GMT+08  • 3 min read
Enviro-Hub back in the green with earnings of $0.7 million in 1H21
Net asset value per share was 4.24 cents as at June 30, versus 4.50 cents on Dec 31.
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Earnings of Enviro-Hub Holdings came in at $0.7 million in 1HFY21 ended June, a reversal from the losses of $1.6 million logged in the year before.

On a fully diluted basis, this translates to earnings per share of 0.042 cents, compared to losses per share of 0.154 cents in 1HFY20.

With this, net asset value per share was 4.24 cents as at June 30, versus 4.50 cents on Dec 31.

Revenue for the first six months of the year was up 19.6% y-o-y to $17.7 million, thanks to a 78.8% jump in revenue from its e-waste recycling segment.

Revenue from property investments edged up by 7.1% to $1.5 million while that from piling contracts plunged by 64.8% to $1.9 million as works were affected by the Covid-19 restrictions.

Cost of sales was up 15% y-o-y to $14.7 million, while gross profit jumped by 50% to $3.0 million in line with the higher revenue.

Gross profit margin improved by 340 basis points to 16.9% in 1HFY21.

Pastel Glove – a glove making entity the group acquired recently – contributed $0.17 million under the share of profits from associates segment in 1HFY21.

Meanwhile, the disposal of about $60 million worth of investment properties contributed to a 58.6% decline in the group’s net debt to $33.5 million.

As at June 30, cash and cash equivalents stood at $11.6 million, up from $2.5 million in the year before.

No dividend has been declared as the group is preserving its cash for strategic business planning and activities.

For more stories about where the money flows, click here for our Capital section

Raymond Ng, executive chairman of Enviro-Hub says that the group’s balance sheet “is now on a firm footing to grow our recycling of e-waste segment and execute on our expansion plans into the supply of healthcare products”.

Looking ahead, he expects the group’s positive performance to continue well into FY2022.

Strong contribution will come from Pastel Glove which has been ramping up production levels to meet strong demand.

Pastel Gloves has installed 2 production lines and is in the midst of commissioning its fourth and fifth production line. The total production capacity for the six production lines will be 1.42 billion pieces of gloves per annum.

Ng also foresees that the recycling segment will have new customers and see an increase in demand.

In an Aug 5 filing, Enviro-Hub announced that it has entered a sale-and-purchase agreement for its planned acquisition of the remaining 75% stake in Pastel Glove for $46.8 million.

The group will finance the consideration and other fees with internal funds and revenue. It had previously announced that it would pay $23.4 million in cash for Pastel Glove, and issue 292,500,000 new shares at 8 cents apiece. The shares will have a one-year moratorium.

Shares in Enviro-Hub closed up 0.1 cents or 1.19% at 8.5 cents on Aug 6.

See: Enviro-Hub joins glove-making party, claims synergy with e-waste recycling

Cover Image: Enviro-Hub

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