Lee Metal reports 32% rise in 1Q earnings to $2.9 mil on lower contribution from property business

Lee Metal reports 32% rise in 1Q earnings to $2.9 mil on lower contribution from property business

By: 
PC Lee
14/05/18, 06:41 pm

SINGAPORE (May 14): Lee Metal Group reported a 32% rise to 1Q18 earnings ended March to $2.9 million from $2.2 million a year ago.

For 1Q18, group turnover increased 23.4% to $100.4 million from $81.4 million in the corresponding quarter last year.

The higher turnover was attributable to Property Development and Investment business which contributed $21 million, but partially offset by Fabrication & Manufacturing business which decreased $2 million.

The group completed its sale of a newly redeveloped bungalow in January for its Property Development and Investment business.

Although the decrease in turnover for its Fabrication and Manufacturing business was due to lower tonnage delivered, this was partially offset by higher steel prices.

The group's gross profit margins as a percentage of turnover in 1Q18 was 14.4%, lower than the corresponding period last year of 19.6%. This was mainly due to lower margins derived from most of the products in the Fabrication & Manufacturing business.

In line with the decrease in tonnages delivered in the Fabrication & Manufacturing business, lower costs were incurred for insurance, freight and transportation, repair and maintenance and other operating expenses. However, higher costs were incurred for rental and financial expenses due to higher stockholding.

Share of loss of associate decreased 62.5% to $6 million due to lower overheads incurred.

Lee Metal says although the rate of contraction in Singapore’s construction sector has eased, margins are expected to remain under pressure due to excess capacity and continuous intense competition among the industry players.

Shares in Lee Metal closed 0.5 cent lower at 42 cents.

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....
Read More >>

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....
Read More >>

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). ....
Read More >>