SINGAPORE (Feb 6): Asia Enterprises, the distributor of steel products to industrial users, reported 4Q17 earnings climbed 41% to $1 million from $0.7 million in 4Q16.
For FY17, the group posted lower earnings of $1.4 million compared to $2.3 million in FY16 due to depreciation charges which rose by $1.8 million following the completion of a warehouse redevelopment at the end of FY16.
Group revenue 4Q17 increased marginally to $6.5 million from $6.3 million in 4Q16, lifted primarily by higher ASP of steel products.
Gross profit in 4Q17 increased 20% to $1.9 million from $1.6 million in 4Q16. The group’s gross profit margin improved to 29.7% in 4Q17 from 25.4% in 4Q16 due mainly to higher ASP.
In 4Q17, the group recorded other income of $302,000 compared to $385,000 in 4Q16 due to absence of foreign exchange adjustment gain.
Marketing and distribution costs in 4Q17 remained relatively steady at $60,000. Administrative expenses in 4Q17 were also unchanged at $1.1 million despite higher depreciation charges.
Asia Enterprises has recommended a final dividend payment of 0.5 cent per share for FY17, representing a payout of 122.0% of its earnings per share of 0.41 cent.
Since its listing in 2005, the group has consistently paid dividends representing at least 40% of its earnings every year.
As at Dec 31 2017, the group had cash and cash equivalents of $57.2 million and zero borrowings.
The group also had a net asset value per share of 27.43 cents, which includes cash and cash equivalents of 16.78 cents per share and inventory with book value of 4.18 cents per share.
Shares in Asia Enterprises closed 1 cent lower at 18 cents on Tuesday.
