Tai Sin Electric nearly doubles H1 earnings to S$8.11 million

CABLE and wire manufacturer Tai Sin Electric saw its earnings nearly double in the first half, thanks to a spike in other operating income, according to unaudited results out on Wednesday.

Net profit rose to S$8.11 million for the six months to Dec 31, 2019, up from S$4.63 million in the same period the year before, even as revenue slipped by 3.7 per cent to S$165.1 million.

The top line took a beating from a decline in cable and wire turnover in Singapore, Malaysia and Vietnam, on the back of lower sales volume and a drop in copper prices, the company said.

But gross profit was still up as the lower copper prices improved margins, even as Tai Sin Electric made fewer deliveries for older low-margin infrastructure projects that are close to completion.

Results were also lifted by other operating income, which rose to S$3 million from S$1.03 million before because of currency gains on a weaker greenback, as well as a fair-value gain on derivative financial instruments, against the previous year's loss.

Earnings per share came in at 1.82 Singapore cents, up from 1.06 Singapore cents previously, while net asset value was flattish at 39.59 Singapore cents a share, against 39.60 Singapore cents as at June 30, 2019.

Tai Sin Electric said in its outlook statement that the operating landscape is expected to remain challenging, given ongoing global business uncertainties, as well as factors such as volatile copper prices that could put a crimp on selling prices.

Still, it plans to focus on developing industrial and infrastructure sector businesses in all its operating segments, the company added.

The board has recommended an interim dividend of 0.75 cent a share, unchanged from the year before, to be paid on March 6. The books close on Feb 28.

The counter added half a Singapore cent, or 1.56 per cent, to S$0.325, before the results.