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Stocks to watch: Far East Orchard, AEM Holdings, Kimly, Boardroom, Trek 2000
THE following companies saw new developments that may affect trading of their shares on Wednesday:
Far East Orchard: The mainboard-listed property player saw its earnings more than halved in the first quarter on surging finance costs and a sharp drop in share of joint-venture profits. Net profit fell to S$3.42 million for the three months to March 31, down 55.4 per cent from S$7.67 million the year prior, according to unaudited financial statements released on Tuesday. While revenue slipped by 3.4 per cent year-on-year to S$38 million - as a weak hospitality market in Australia and Malaysia was compounded by a softer Australian dollar - a lower cost of sales still pushed gross profit up by 4.7 per cent. Earnings per share (EPS) came in at 0.78 Singapore cent, down from 1.8 cents before. No dividend was recommended, unchanged from the previous year. Far East Orchard closed up by S$0.01 or 0.78 per cent at S$1.29 before the results were announced.
AEM Holdings: Mainboard-listed AEM Holdings, which provides advanced chip testing solutions, on Tuesday posted a drop in first-quarter earnings on fewer orders from its main equipment systems customer. Tracking the lower turnover, net profit was lower by 19.7 per cent year-on-year to S$6.6 million for the three months to March 31, with revenue also down 19.7 per cent to S$52.7 million. EPS was 2.44 Singapore cents, down from 3.06 cents. No dividend was recommended, unchanged from the same period the previous year. AEM closed up S$0.01 or 0.93 per cent to S$1.09 on Tuesday before the results were announced.
Kimly: Catalist-listed coffeeshop operator Kimly's second-quarter earnings took a hit from higher expenses, even though it notched turnover growth on recent acquisitions, in results released on Tuesday. Net profit came in lower by 13.2 per cent year-on-year to S$4.73 million for the three months to March 31 on the hit from selling and distribution, administrative and other expenses. Revenue, meanwhile, rose 4.7 per cent to S$51.5 million on contributions from restaurant chain Tonkichi and confectioner Rive Gauche, which were bought in July 2018. EPS slipped to 0.41 Singapore cent from 0.47 cent. Kimly closed flat at S$0.245 on Tuesday before the results were announced.
Boardroom: The mainboard-listed business services provider saw its first-quarter net profit drop sharply on spiralling staff and other costs. Net profit shrank by 78.4 per cent on the previous year to S$418,000 for the three months to March 31. This was even as revenue grew by 17.3 per cent to S$22.3 million, with some newly bought Symphony House Group companies folded into Boardroom's Malaysian businesses. But staff benefits swelled by 29.6 per cent to S$13.9 million on larger headcount and higher salaries. EPS slipped to 0.2 Singapore cent, down from one cent previously. No dividend was recommended, unchanged from the previous year. Boardroom last traded on May 3 at S$0.77.
CSC Holdings: Mainboard-listed ground engineering company CSC Holdings is facing a fourth-quarter net loss for the three months to March 31, the board said in a profit warning on Tuesday. It added that the net losses were incurred as a result of strict requirements and difficult working conditions on a particular project, which led to cost over-runs. The group's order book stood at S$190 million as at Feb 11, 2019, it had earlier disclosed. The counter closed up by 0.1 Singapore cent or 5.26 per cent at S$0.02 before the announcement.
Trek 2000 International: Mainboard-listed technology company Trek 2000 International, which is facing probes by the police and bourse operator, on Tuesday reported a sharp drop in first-quarter earnings. Net profit came in at US$112,000 for the three months to March 31, down by 79.7 per cent on the US$552,000 clocked the year prior, while revenue fell 48.9 per cent to US$4.29 million. EPS came in at 0.03 US cent against 0.17 US cent previously, while net asset value was 13.95 US cents, compared with 13.77 US cents as at Dec 31, 2018. No dividend was recommended, unchanged from the previous year, with the board saying that Trek 2000 "will not be declaring dividend as the company continues to invest in research and development on the latest technology" while it hunts for business expansion opportunities.