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Lung Kee (Bermuda) Holdings' full-year profit up 45%

MAINBOARD-LISTED Lung Kee (Bermuda) Holdings posted a 45 per cent jump in its full-year earnings, boosted by a one-off gain from the sale of Shanghai Lung Kee Metal Products, one of its indirect wholly owned subsidiaries.

For the full year ended Dec 31, 2017, profit attributable to owners of the company was HK$278.3 million (S$46.6 million). Earnings per share stood at 44.05 HK cents, up from 30.35 HK cents the year before.

Lung Kee (Bermuda), which engages in the manufacturing and marketing of mould bases and related products, recorded a 13 per cent rise in revenue to HK$2.51 billion, compared to the year before.

Sales growth came from the group's China business, where demand for mould products was on the rise.

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"The demand of automobile and its components, intelligent household products and high-tech electronic products continued to boom, resulting in a satisfactory growth in the group's turnover as its high quality mould products suited the market needs," Lung Kee (Bermuda) said.

The company added that in FY2017, the price of raw materials "notably increased", but other operating costs were managed "within a controllable range".

The price of local mould steel increased in FY2017, and raw materials cost rose compared with that of the previous year, which affected the group's bottom line.

A final dividend of 16 HK cents per share and a final special dividend of 12 HK cents per share "should be paid" to shareholders on May 16.

Subject to shareholders' approval at an annual general meeting, the proposed final dividend and final special dividend will be despatched to shareholders on May 30.

The counter last traded on Feb 28 and closed at S$0.70.