SINGAPORE (Mar 2): SAC Advisors is keeping its “buy” rating on Advancer Global with a target price of 36 cents.

The group on Thursday announced full-year earnings rose 14.2% to $3.1 million in FY17 from $2.7 million in FY16.

See: Advancer Global posts 14.2% rise in FY17 earnings to $3.1 mil

Revenue came in 28.2% higher at $65.3 million, aided by an increase in the number of foreign domestic workers (FDW) that the group had placed out to households, an increase in service income from existing and new cleaning services contracts, as well as an increase in the aggregate service fees charged for on-going security projects.

In a Friday report, analyst Terence Chua says, “The higher than expected gross margin was a pleasant surprise and shows that the group’s integration efforts remain well on track.”

Administrative expenses -- 29.5% higher due to the consolidation of acquired subsidiaries and higher headcount to support corporate activities --  and a 51.9% decrease in other operating income led to lower than expected profit.

“We have kept our earnings estimates and target price unchanged for now, pending our meeting with the management,” says Chua.

As at 1.05pm, shares in Advancer Global are trading at 27 cents or 11.4 times FY18 earnings.