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Chasen Q3 profit dips 5% to S$1.27m, declares first interim dividend in 10 years

LOGISTICS specialist Chasen Holdings said net profit narrowed 5 per cent to S$1.27 million for the third quarter ending Dec 31, 2018, down from S$1.34 million the year before.

For the first nine months, earnings grew 34 per cent to S$4 million, up from S$3 million the year before and also the higest in seven years, the company annouinced during the midday trading break on Wednesday.

Chasen said that to reward shareholders, it has declared an interim dividend of 0.1 Singapore cent a share, its first in at least 10 years. This will be paid on March 18.

Revenue for Q3 rose 8 per cent to S$34.0 million, from S$31.6 million the year before. All three of Chasen’s business segments, namely specialist relocation, third-party logistics (3PL), and technical and engineering (T&E), reported growth.

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Notably, the T&E division delivered a better performance as it recognised contributions from a number of new contracts, including some from the S$10.2 million worth of projects announced on June 26, 2018, said the firm. These required it to provide, among other things, steel fabrication and scaffolding, as well as the installation of air-conditioning and mechanical ventilation systems.

Earnings per share (EPS) stood at 0.33 Singapore cent for the third quarter, down from 0.35 cent the previous year. For the nine months ending Dec 31, EPS was at 1.06 Singapore cents, up from 0.83 cent the year before.

Low Weng Fatt, Chasen’s managing director and CEO said: “With a leaner and more efficient structure, our T&E arm is now better positioned to pursue more projects and offer more value to customers.”

Mr Low added that demand for Chasen’s relocation services is still healthy despite China’s economic slowdown and the ongoing Sino-US trade dispute as the production output from several move-in projects handled by the company’s China subsidiary is mainly for the Chinese domestic market.