Chuan Hup 2017 profit jumps in absence of impairment loss

Singapore

INVESTMENT company Chuan Hup Holdings on Monday reported a 74.3 per cent jump in net profit for its fiscal 2017, helped by higher revenue and the absence of an impairment loss from a year ago.

Net profit for the 12 months ended June 30, 2017 stood at US$17.9 million, up from US$10.3 million a year ago. This translated to earnings per share of 1.93 US cents, up from 1.11 US cents.

The group also declared a dividend of three Singapore cents, comprising its final dividend of one Singapore cent, and a special dividend of two Singapore cents. By comparison, the group had declared a dividend of one Singapore cent a year ago.

In the year-ago period, the group reported an impairment loss of US$4.4 million on available-for-sale investments.

Revenue for fiscal 2017 rose 18.7 per cent to US$283 million, attributable to an increase in property and electronics manufacturing services revenue. The group derived more than half of its revenue from the US, with US sales standing at US$109 million, up from US$95.8 million. It also has exposure to markets such as Australia, Europe, China and Singapore.

"Despite the pickup in global economy and manufacturing activity, the group maintains a cautious outlook given the ongoing geopolitical uncertainties," it said in its financial statement. "The board of directors will continue to exercise prudence when considering new investments."

The group separately said it has redesignated its head of corporate development, Eldon Wan, as its chief operating officer. Mr Wan was previously chief financial officer of PCI Limited, and Straits Trading Company.

Shares of Chuan Hup closed on Monday at S$0.275, down half a cent.