Lee Metal posts 53% drop in 3Q earnings to $1.9 mil

Lee Metal posts 53% drop in 3Q earnings to $1.9 mil

Stanislaus Jude Chan
10/11/17, 06:46 pm

SINGAPORE (Nov 10): Lee Metal Group saw its earnings halved to $1.9 million in the 3Q ended September, falling 53% from $4.0 million a year ago.

Revenue dipped marginally by 1.5% to $86.4 million in 3Q17, from $87.7 million a year ago.

The lower turnover was largely attributable to the winding down of its steel merchandising business in December last year.

Rental and utilities expenses grew 11.4% to $1.6 million, mainly due to lower rental for low inventory levels in the corresponding quarter last year.

Other operating expenses rose 16.8% to $2.3 million, led by a $0.8 million loss on liquidation of a subsidiary.

Financial expenses more than doubled to $0.60 million, from $0.24 million a year ago. This was mainly due to higher trade financing in its fabrication & manufacturing business.

As at end September, cash and cash equivalents stood at $61.8 million.

The group has declared an interim dividend of 0.3 cents for the current period, payable on Dec 8. This is the same as the interim dividend paid in 3Q last year.

Looking ahead, Lee Metal says recent government measures to bring forward public infrastructure projects coupled with the surge in residential collective sale transactions should increase demand for building works, and will augur well for the group’s value added activities.

Shares of Lee Metal closed 2 cents higher at 38.5 cents on Friday.

Right timing: Temporary pause as STI consolidates gains

SINGAPORE (Feb 22): The recovery by the Straits Times Index that started towards mid-January is likely to continue despite short term hiccups. Quarterly momentum is in rising mode, the 50- and 100-day moving averages are positively placed, and the index remains above its 200-day moving average. ADX is rising and the DIs are positively placed. Interestingly annual momentum has stabilised and could attempt to recover. Prices could ease as short term stochastics approaches the top end of its range and turns down. This may cause a temporary retreat. Support is at the breakout level of 3,19....

UOB is RHB's top pick when it comes to local banks

SINGAPORE (Feb 22): United Overseas Bank is the top pick for Singapore banks, says RHB Research which believes the share price weakness after the results release offers a good entry point. UOB has also declared a final dividend of 50 cents per share and special dividend of 20 cents per share. FY2018 total dividend of $1.20 gives an attractive yield of 4.6%. Rising 18% y-o-y, UOB’s FY2018 earnings of $4.01 billion came in line with RHB’s forecast of $4.16 billion and consensus’ forecast of $4.05 billion. For FY2019, management has guided for net interest margin (NIM) to be flatti....

Pioneer, Merdeka... Next, a Majulah Generation package?

SINGAPORE (Feb 22): Hot on the heels of a $9 billion Pioneer Generation package announced in Budget 2014, the $8 billion Merdeka Generation package is setting up expectations of similar packages for every generation of ageing Singaporeans. Notably, both are geared towards healthcare and broadly available to an entire generation of Singaporeans. Already, analysts are expecting at least one more package to follow. “I suppose when there is only one dot, one can’t extrapolate, but with two dots you can,” says Tan Ern Ser, a sociologist at the National University of Singapore (NUS). ....