Cheung Woh Technologies posts S$3.09m loss for H2 2021

CHEUNG Woh Technologies posted a S$3.09 million loss for the half year ended Feb 28, 2021, narrowing a S$4.6 million loss in the corresponding period of the previous year.

Revenue shrank 43.3 per cent to S$13.4 million on the back of declines in its hard disk drive (HDD) components and precision metal stamping (PMS) components segments.

Loss per share was 1.04 Singapore cent, compared to loss per share of 1.54 Singapore cents in H2 2020.

For the full year, net loss was S$2.9 million compared to net loss of S$5.07 million in the previous year. Revenue decreased 35.3 per cent to S$31.6 million due to declines in HDD and PMS components segments. The declines were partially offset by revenue improvement in the forged and machined components segment.

Loss per share was 0.99 Singapore cent, compared to loss per share of 1.69 Singapore cents in FY2020.

The company is recommending a special final dividend of 0.5 Singapore cent per ordinary share. This is the same as the dividend paid out in the corresponding period of the previous year.

The company's operations are not significantly affected by the Covid-19 pandemic at this time. Operations in its Zhuhai subsidiaries in China are back to normal, while operations in its Malaysian factories have resumed under strict safety measures. The Singapore business mainly carries out head office functions and is therefore not affected.

However, it expects the business environment to continue to be "uncertain and challenging" due to global trade friction and the Covid-19 pandemic.

Sales for the HDD components segment are forecast to be lower, while sales for forged and machined and PMS components segments are expected to improve.

Cheung Woh shares last traded flat at S$0.15 on Thursday.