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Pan-United Q4 net profit soars 167%, raises dividend

PAN-UNITED, Singapore's biggest producer of ready-mix concrete, on Tuesday posted a fourth-quarter net profit of S$5.4 million, up 167 per cent from S$2 million in the same period a year earlier.

Revenue in the three months ended Dec 31, 2019 was S$169 million, down 20 per cent from the same period a year earlier.

But the bottom line was lifted by lower raw materials, subcontract costs and other direct costs, which fell 26 per cent to S$134.7 million.

Q4 earnings per share was 0.77 Singapore cent, up 166 per cent from 0.29 cent in the fourth quarter of 2018.

Full-year earnings per share was 2.93 cents, up 237 per cent from 0.87 cent in 2018.

Pan-United made a net profit of S$20.5 million in 2019, up 238 per cent from S$6.1 million in 2018, despite an 11 per cent fall in revenue.

A final dividend of 1.1 cents per share has been proposed. The final dividend will be paid on May 29. Combined with the interim dividend of 0.5 cent, total dividend for 2019 is 1.6 cents, up from 0.8 cent in 2018.

Pan-United said that ready-mix concrete demand is forecasted by the Building and Construction Authority to increase from an estimated 12.5 million cubic metres in 2019 to between 14 million and 15 million cubic metres in 2020.

"However, the expected staggered return of foreign construction workers arising from the Covid-19 outbreak may affect local construction activities in the next few months," it added.

Net asset value per share was 28.9 cents as at Dec 31, 2019, up from 27.3 cents as at Dec 31, 2018.

Pan-United shares rose half a cent or 1.35 per cent to S$0.375 on Tuesday.