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

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

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.

Metro bets on decentralised office market with $45.6 mil investment in Tampines property

SINGAPORE (April 18): Metro Group has acquired 7 & 9 Tampines Grande, a premium Grade A office property in Singapore, through a 50:50 joint venture (JV) between its subsidiary Metrobilt Construction and an affiliate of SRIF GP. On its part, Metro will be investing about $45.6 million for its 50% capital commitment share. Through the newly-incorporated JV company, Ascend TGrande, both Metro and SRIF have agreed to purchase T-Grande Investment Holding from Golden Crest Holdings, a wholly-owned subsidiary of City Developments. T-Grande Investment Holding is the owner of T-Grande Prop....

Keppel Corp posts 40% drop in 1Q earnings to $203 mil on lower one-off gains

SINGAPORE (Apr 18): Keppel Corporation saw its earnings fall 39.9% to $202.9 million for the 1Q19 ended March, from $337.5 million a year ago. The decline was mainly attributable to the absence of a $289 million gain in 1Q18 arising from the en bloc sale of Keppel Cove in Zhongshan, China. In 1Q19, the group recorded gains of $174 million from the divestment of a 70% interest in Dong Nai Waterfront City, Vietnam and the re-measurement of previously held interests in M1 at acquisition date Consequently, other operating income was halved to $145.6 million in 1Q19, from $300.0 million a ....

UOI 1Q earnings more than double to $11.4 mil

SINGAPORE (Apr 18): United Overseas Insurance (UOI), the insurance arm of United Overseas Bank (UOB), reported 1Q19 earnings increased 153% to $11.4 million, compared to $4.5 million in 1Q18. Gross premium written saw a 2.5% increase to $27.9 million from $27.2 million a year ago, mainly due to an increase in fire and reinsurance classes of insurance. Underwriting profit was 16.1% higher at $5.9 million compared to $5.0 million last year, mainly due to a 29% y-o-y increase in net commission, as a result of higher reinsurance commission recoveries from reinsurers. During the quarter, t....