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Nico Steel manages turn around for 1HFY21

The Edge Singapore
The Edge Singapore10/12/2020 10:16 PM GMT+08  • 1 min read
Nico Steel manages turn around for 1HFY21
The company was able to eke out further improvement in its margins.
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Nico Steel Holdings, which makes metal parts for the consumer electronics industry, has reported a turn around.

For the 1HFY21 ended Aug 31, it made earnings of US$260,000, reversing from losses of US$283,000 incurred in the year-earlier period. The company’s revenue in the same period increased by 15.5% y-o-y to US$8.2 million.

The company was able to eke out further improvement in its margins. For 1H21, its gross profit margin was 23.3%, up 0.6 percentage points from 22.7% from 1H20. For the whole of FY20, its gross profit margin was 20.1%.

Danny Tan, executive chairman and president of Nico Steel (picture) says the company is making “good progress” gaining recognition for its proprietary range of metal alloys among globally renowned brands of electronic communication devices.

“The trade dispute, however, led to uncertainties and derailed us from some development projects that we had participated in earlier,” he says.

The company is also actively working with “dominant” Chinese brand owners so as to broaden its customer base.

With the world economy still grappling with the pandemic, the company sees accelerated digitalisation and transformed conventional lifestyles, and demand for electronic communication devices will grow, thereby, supporting demand for Nico Steel’s products.

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