SINGAPORE (Feb 8): Lim & Tan Securities likes Ellipsiz as it believes that it is in a divestment mode and that management will help minority shareholders monetise assets and realise dividends in the process.
The group on Tuesday announced that its 2Q18 earnings were up more than threefold to $5.8 million from $1.7 million a year ago, due to a one-off gain of $14.2 million from the disposal of its subsidiary, SV Group.
This brought the group’s 1H18 earnings to $8.1 million, compared to $2.3 million recorded in the previous year.
See: Ellipsiz 2Q earnings up threefold to $5.8 mil on disposal of subsidiary
The group’s revenue during the quarter saw a 3% increase y-o-y to $10.5 million, with an increase in gross profit margin to 25%.
For 2Q18, the group did not disappoint by doubling their normal interim dividend to 2 cents per share and giving an additional special dividend of 8 cents, up significantly from 1.5 cents last year on the back of the sale of their probe card business to Nidec Corp of Japan.
Looking ahead, the group remains cautiously optimistic on its performance prospects for 1H18 in respect of the remaining distribution & services solutions business segment.
The group also mentioned that it will remain vigilant of its volatile operating environment, while exploring opportunities of growth inter-alia expanding its existing business to enhance shareholder value.
As at 12.05pm, shares in Ellipsiz are trading at 81 cents.
