Serial System posts 91% lower 4Q earnings of US$0.4 mil

Serial System posts 91% lower 4Q earnings of US$0.4 mil

By: 
Michelle Zhu
26/02/18, 11:23 am

SINGAPORE (Feb 26): Serial System on Saturday announced FY17 earnings of US$9.6 million ($12.6 million), double its full year earnings of US$4.6 million posted a year ago.

The stronger bottomline came on the back of an overall improvement in sales and profit margins as well as substantially smaller losses from associated companies.

The group has proposed a final dividend of 0.46 cent, which brings the total payout for FY17 to 0.75 cent compared to 0.35 cent a year ago.

For the 4Q ended Dec 2017, group earnings fell 91% to US$0.4 million from US$4 million in 4Q16, as net profit margin declined by 1.1 percentage point to 0.1% from 1.2% previously.

FY17 sales revenue grew 6% to a record US$1.5 billion from US$1.4 billion in FY16.

The increase in sales was largely attributable to 17% higher contributions from the electronic components distribution business, which came on the back of higher demand from new and existing customers in Taiwan, Hong Kong, Taiwan and South Asia.

Meanwhile, revenue from the consumer products distribution business fell 69% compared to FY16 as a result of the group’s efforts to streamline the business by reducing sales of low-margin products and exit non-performing markets.

The move however helped to lift overall gross profit margin for FY17 to 7% from 6.9% in the previous year, says Serial System.

Over FY17, it also booked a smaller loss of US$0.4 million compared to its loss of US$3.9 million in FY16 due to smaller losses at its 19%-owned subsidiary, Bull Will.

Serial System expects to remain profitable in FY18 amid a generally buoyant outlook for the semiconductor market, with global semiconductor sales to be underpinned by firm demand for integrated circuits this year.

“With the global semiconductor market still expected to remain buoyant in the foreseeable future, we believe we will be able to perform reasonably well in 2018. We will, at the same time, continue to keep a close watch on competitive and cost pressures and seek to remain nimble in order to uphold profit margins and better meet the needs of our customers,” says group CEO and chairman, Derek Goh.

As at 11.13am, shares in Serial System are trading 1.7% lower at 17 cents.

Living it up

SINGAPORE (Mar 25): This is the season for indices. On March 20, Singapore was ranked 34th in the World Happiness Index — less happy than Taiwan, but far more cheery than Hong Kong and China, as well as its neighbours, Thailand, Malaysia and Indonesia. Globally, the Scandinavian and north European cities top the index; and New Zealand, Canada and Austria round out the top 10. The index this year focuses on happiness and the community, taking into account how happiness has evolved over the years, as affected by technology, social norms, conflicts and government policies. A week earlier, th....
Read More >>

The charismatic bankrupt who allegedly pulled the strings behind Singapore's largest stock manipulation scandal

SINGAPORE (Mar 26): Garbed in purple overalls, John Soh Chee Wen cuts a relaxed figure as he takes his seat. The garment falls fittingly on his athletic frame, not unlike a designer suit. It could well have made a fashion statement, save for the word "prisoner" emblazoned in white across the back. As his legal team huddled around him before the start of the trial, the 60-year-old is a picture of calm. At one point, he casually flashes a thumbs up at his lead counsel, N Sreenivasan, a managing director and senior counsel at Straits Law LLP. Then, as he turns back to his seat in the dock, ....
Read More >>

OCBC still bullish on banking stocks after a lacklustre FY18

SINGAPORE (Mar 26): OCBC Investment Research remains bullish on Singapore’s banking space while keeping its sector “overweight” with “buy” calls on both DBS and UOB, which have been given fair value estimates of $29.31 and $28.30, respectively. Both stocks had dividend yields of 4.8%, with DBS and UOB trading at the respective book values of 1.3 times and 1.1 times, or at an average of 1.2 times historical book as at the close of Wednesday. In a Tuesday report, OCBC analyst Carmen Lee notes that raising this average to 1.3 times book and factoring a 10% premium for DBS over the....
Read More >>