Shares in CDW Holdings BXE closed 1.92% to 25.5 cents on March 1, hours after it reported a surge in its earnings for the 2HFY2022 and FY2022 ended Dec 31, 2022.
For the 2HFY2022, earnings surged 3.85 times y-o-y to US$13.2 million ($17.8 million) from US$3.4 million while FY2022 earnings surged six times to US$14.3 million from US$2.4 million previously.
The surge in FY2022 earnings was due mainly to a gain on disposal of an associate. The higher full-year revenue and other income also contributed to the earnings growth.
Revenue for the FY2022 increased by 3.3% y-o-y to US$148.0 million boosted by the surge in revenue for the 2HFY2022. The turnover for the six-month period was attributed to the group’s key customer having backlog orders for its digital instrument panels for premium automotive cars to be completed by September 2022 following the lockdowns in April 2022 and May 2022. In addition, the group’s total delivery volume of LCD backlight units for automotive digital instrument panels saw a recovery to a higher level compared to the prior year.
Gross profit fell by 1.7% y-o-y to US$25.7 million due to pricing pressures.
Other income rose by 117.1% y-o-y to US$2.3 million consisting of foreign exchange gain/loss, together with gain on disposal of assets, government subsidy fund, fair value change of financial instruments and interest income.
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During the year, the group recorded a gain on disposal of an associate of US$10.3 million due to the acquisition of the controlling stake in ABio, where there were none in the year before. This was from the acquisition of a controlling shareholding in ABio, where the post-acquisition results of the company were incorporated into the group.
As at Dec 31, 2022, cash and cash equivalents stood at US$26.7 million.
A final dividend of 0.7 US cents per share has been declared and payable on May 19.
