Automotive manufacturer YHI International posted an 8.4 per cent rise in first-quarter net profit to S$2.1 million.
This came on the back of revenue climbing 7.9 per cent to S$130 million, mainly due to higher sales in both the group's distribution and manufacturing businesses.
Its distribution business, which accounted for 68.1 per cent of the group's total revenue, recorded an increase of 1.5 per cent in revenue to S$88.6 million. Its manufacturing business, which accounted for the rest of its revenue, posted an increase of 24.7 per cent in revenue.
Weak global demand and the prevailing overcapacity of tyres in the industry has posed challenges for the sales of the group's tyre products. Coupled with the strong US dollar, intense competition has impacted YHI's profit margins of its tyre distribution business in Singapore, Malaysia, Indonesia and Australia.
For its manufacturing business, the group will continue to invest in its R&D design and technical competencies to value-add to its after-market customers. It will also continue expanding its customer base.
The group has also been granted approval by the relevant state authority to transfer the land title of its factory in Sepang, Malaysia, to the purchaser, and expects the sale transaction to be completed in due course.
The group's earnings per share stood at 0.36 Singapore cents, while its net asset value was 43.63 cents per ordinary share.
YHI's counter closed at 20 cents on Tuesday, down half a cent.