China Kangda sinks into the red with $3.3 mil full-year loss on higher chicken mortality

China Kangda sinks into the red with $3.3 mil full-year loss on higher chicken mortality

By: 
Michelle Zhu
29/03/18, 07:46 am

SINGAPORE (Mar 29): China Kangda Food Company posted a FY17 loss of RMB15.8 million ($3.3 million) compared to earnings of RMB6.3 million a year ago. 

In a Wednesday filing, the group attributes the full-year loss largely to higher mortality rates of chicken resulting from bad weather, as well as higher administrative costs.

The loss comes even as revenue remained steady at around RMB1.3 billion when compared to a year ago, with a 5.8% increase in sales turnover and higher gross profit margin to 8.3% from 8% previously.

Over the year, sales of chilled and frozen rabbit products grew by 12.4% to RMB157.1 million on the recovery of demand, which China Kangda says it responded to by enhancing the rate of production utilisation by expanding sales channels and continuous marketing efforts.

While revenue derived from the production and sales of chilled and frozen chicken meat products increased by 15.8% to RMB268.9 million, revenue for the production and sales of processed food products fell by 5.5% to RMB690.9 million on lower demand.

In particular, the group says bad weather has brought a negative impact to tis breeding production process of chicken on top of a “fierce business environment”, which has put additional pressure on the profit growth of its chicken meat segment.

Administrative expenses for FY17 grew to RMB58.5 million from RMB 49.1 million a year ago from higher professional fees and the staff costs of senior management upon converting the company’s listing status on the SGX-ST and a change in shareholding structure.

In its outlook, the group says it expects to face greater challenges ahead within the food industry in the face of low growth and intense competition.

As such, the group says it will continue to increase sales contribution from high value-added chicken related processed foods and nurturing major customers, while continuing to reduce its costs by identifying and restructuring its operations.

Shares in China Kangda closed flat at 17 cents on Wednesday.

CapitaLand Mall Trust upgraded to 'buy' by UOB on Jurong Lake District plans, Funan launch

SINGAPORE (May 27): CapitaLand Mall Trust will benefit from the development of Jurong Lake District (JLD) as it has three retail malls located within Jurong Gateway, says UOB KayHian. See: CapitaLand Mall Trust declares 3.6% higher DPU of 2.88 cents on higher income IMM Building, JCube and Westgate, which in total accounts for 20% of CMT’s portfolio valuation, are located within Jurong Gateway and adjacent to Jurong East MRT station. Meanwhile, Funan, which is about 90% pre-committed for retail space and 98% pre-committed for office space, is scheduled to open next month. See als....
Read More >>

Time to 'buy' MindChamps as growth initiatives bear fruit: RHB

SINGAPORE (May 27): RHB Research continues to keep MindChamps Preschool at “buy” at a lower target price of 83 cents compared to 87 cents previously, indicating a 26% upside plus 2.2% yield. The reduced target price comes after cutting FY19-20F earnings by 7% and 11%, respectively, upon management indications that adopting SFRS 16 has negatively impacted the group’s 1Q19 pre-tax profit by about $90 million or -15%. In a May 17 report, analyst Juliana Cai says she nonetheless remains positive on MindChamps as she expects the group to start reaping returns from its investments as its....
Read More >>

Ascendas-Singbridge establishes co-innovation lab with IMDA & Enterprise Singapore

SINGAPORE (May 27): Singapore’s smart nation ambitions have been further bolstered by a new partnership between Ascendas-Singbridge, Infocomm Development Authority of Singapore (IMDA) and Enterprise Singapore (ESG) to form the Smart Urban Co-Innovation Lab. All three parties are looking to have a total of 30 co-innovation projects come out from the lab, which is expected to be launched at the end of the year as the first developer-led lab in Southeast Asia. This announcement follows last year’s call for innovation led by IMDA, Ascendas and JTC. Ascendas has published 12 probl....
Read More >>