Grand Venture declares maiden dividend as H1 earnings surge to S$8.5m
CATALIST-LISTED Grand Venture Technology has declared its first cash dividend, amounting to 0.5 Singapore cent per share, given strong bottom-line growth for the first half of this year.
The proposed payment date for the interim dividend is Sept 10, after the books close on Aug 26.
The manufacturing solutions and services provider, which went public in January 2019, expects to continue with a dividend payout ratio of up to 20 per cent. This will be subject to its profit performance, balance sheet and cash-flow requirements, as well as the availability of market opportunities for value-creating investments.
The maiden dividend came as Grand Venture's net profit nearly quadrupled to S$8.5 million for the six months ended June 30, up from S$2.2 million in the year-ago period.
Earnings per share stood at 3.07 Singapore cents, compared to 0.95 cent in the corresponding period in 2020, it said in results released on Tuesday night.
Revenue almost doubled to S$53.5 million, from S$26.9 million in H1 2020, as robust customer demand boosted business activity across all its business segments.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
In the group's semiconductor segment, revenue more than doubled to S$38.9 million, from S$18.2 million previously. The strong demand for semiconductors was driven by the global push towards digitalisation, consumer electronics, data, 5G, artificial intelligence and Internet of Things, although the group's growth was partially constrained by Malaysia's movement control order implemented in May.
Meanwhile, the life sciences segment's revenue rose 62.2 per cent year on year to S$8.3 million, as the group started mass production of mass spectrometers amid higher demand for such equipment in areas including drug discovery and vaccine production.
Grand Venture said it will be building up its working capital to meet its customers' needs, as it expects an increased level of business activity in the months ahead.
At the same time, the group is also enhancing its capabilities in advanced materials and expanding its customer base in the medical and life sciences industries, both organically and inorganically.
Shares of Grand Venture fell 1.5 per cent or S$0.02 to close at S$1.31 on Tuesday, before it announced the financial results.
Copyright SPH Media. All rights reserved.
