Precision parts maker Spindex Industries has reported earnings of $21.3 million for the full year ended June 30, up 74.5%.
Revenue in the same period was up 37%y-o-y to $204.9 million, due to higher demand for office equipment, domestic appliances and hobby-related equipment.
“Actual as well as potential Covid-19 related disruptions to the global supply chain have continued to result in some forward stocking of components,” the company notes.
For 2HFY2021, despite higher raw material, labour and transportation costs, the company was able to maintain its gross margin at 22.5%.
The company is making use of this period of stronger earnings to step up its capital expenditure “to renew and optimize its network of manufacturing facilities across Asia to better cater to business fluctuations.”
Spindex plans to pay a higher final dividend of 4.5 cents per share, up from 2.8 cents paid for FY2020.
With an earnings per share of 18.44 cents, the company’s Aug 24 closing price of $1.20 translates into a PE ratio of 6.5 times.
As at June 30 2021, the company’s net asset value was 128.1 cents.