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- Net Profit Matches Profit Forecast
- Encouraging Performance in Electronics Parts Segment |
HONG KONG, May 23, 2013 - (ACN Newswire) - PanAsialum Holdings Company Limited ("PanAsialum" or "the Group") (HKSE: 2078), a fast-growing aluminum products manufacturer based in Guangdong Province, PRC, today announced its 2013 interim results for the six months ended 31 March 2013, its first such report since its listing in February.
During the six months period, the Group has achieved a satisfactory growth with total revenue reaching approximately HK$1,293 million, up 9% compared with the corresponding period in year 2012, primarily due to the increased sales of Electronics Parts, supplemented by the increased sales of its Branded OPLV Products in the PRC. Gross profit increased to HK$388 million for the six months ended 31 March 2013. Overall gross profit margin increased from 25% for the six months ended 31 March 2012 to 30% for the period, attributable to the increase in sales in Computer Numerical Control ("CNC") products under the Electronics Parts segment during the period. Net profit after tax attributable to shareholders was approximately HK$249 million, as compared with the forecast of HK$233 million disclosed in the Prospectus. Basic earnings per share for the six months ended 31 March 2013 amounted to 25 HK cents (six months ended 31 March 2012: 21 HK cents).
The Board of Directors proposed an interim dividend of 20 HK cents per share.
The Group had more than HK$1,200 million cash and cash equivalent as at 31 March 2013. After taking into consideration of proposed dividend and foreseeable capital expenditure, Management considers that the liquidity position is healthy.
The Management of PanAsialum, said, "We are delighted that the results of the business operations for the first half of the financial year 2013 have adhered to the Group's business plan and have matched the profit forecast as disclosed in the Prospectus. During the six months period, the Electronics Parts segment has shown strong growth with a steady stream of orders for existing products and continuously increasing orders for new products from our major customers. With our solid business foundation, we expect to further enhance our market share in the Electronics Parts business."
Business Review
The Company currently manufactures three categories of products: Electronics Parts, Branded OPLV Products and Construction and Industrial Products.
Electronics Parts
The Electronics Parts segment has shown strong growth during the period and contributed approximately 53% of the Group's total revenue, an increase of 9% as compared with 44% for the corresponding period in 2012. The major customer of the Group has placed consistent orders for existing products, as well as for new products which have contributed to a significant growth in revenue during the period. The revenue from this major customer has increased by 31% compared to the corresponding period in 2012. By increasing its CNC capability and vertically integrating aluminum product manufacturing more effectively, PanAsialum was able to sell more CNC products during the period, which contributed to a strong growth in overall gross profit of this segment (from 24% to 33%).
Branded OPLV Products
The Branded OPLV Products segment has achieved a satisfactory growth and its share in the revenue of the Group has increased to 10% for the period as compared with 8% for the corresponding period in 2012. The Group has continued to develop the Branded OPLV products market in Mainland China and has engaged new distributors, bringing the total to 584 distributors in 27 provinces, autonomous regions and municipalities as at 31 March 2013. The continuing consolidation of performing long-term distributors and termination of underperforming distributors has therefore contributed to a strong growth of 41% in Branded OPLV Products sales during the period. In addition, the Group has reduced its sales discount to distributors, which contributed to a growth in gross profit to 26% for the period from 21% for the corresponding period in 2012.
Construction and Industrial Products
The Construction and Industrial Products segment has contributed steady revenue and accounted for 37% of the Group's total revenue for the period. The Group was able to maintain its market share in Australia and generated a slight revenue growth for the period compared to the corresponding period in 2012. During the period, around 40% of products sold to Australia were not subject to anti-dumping duties, thus the Group could maintain its sales volume and gross profit margin in the Australia market. On the other hand, the Group had discontinued sales to certain customers in Mainland China whose orders could not achieve a satisfactory gross profit margin. Therefore, the overall sales of this segment during the period dropped by 16% compared to the corresponding period in 2012.
Prospects
The fast-growing global demand for increasingly popular consumer electronics devices has provided an opportunity for aluminum products manufacturers. Mainland China is now the world's top producer and consumer of aluminum extrusion products in terms of volume. Going forward, the Group believes that the electronics parts segment will sustain a healthy growth and thus spur the development of the entire market.
The Management concluded, "Looking ahead, we will strive to gain a leadership position in consumer electronics parts markets and continue business diversification. To achieve these clear objectives, we will expand manufacturing capacity to meet demand; target new fast-growing consumer electronics products; maintain an appropriate level of diversification and continue to build the OPLV Brand and distribution network. With the Group's state-of-the-art technology, together with our high-quality and reliable products, we are confident to maintain our strong strategic relationship with the world's leading contract manufacturers, enable us to diversify across numerous end-markets and regions and deliver good returns to our shareholders."
Contact:
Strategic Financial Relations Limited
Keris Leung / (852) 2864 4863 / keris.leung@sprg.com.hk
Angela Ng / (852) 2864 4855 / angela.ng@sprg.com.hk
Ellena Cheung / (852) 2114 4912 / ellena.cheung@sprg.com.hk
Fax: (852) 2527 1196
Topic: Earnings
Source: PanAsialum Holdings Company Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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