SINGAPORE (Feb 28): Midas Holdings announced a 76.3% increase in FY16 earnings of RMB100.8 million ($20.5 million) from RMB57.2 million a year ago.
This was due mainly to contributions from the group’s aluminium stretched plates division following the completion of its acquisition on July 27, 2016 during FY16.
Revenue declined by 1.8% to RMB1,485.7 million, compared to RMB1,512.2 million a year ago. On a segmental basis, revenue from the group’s core aluminium alloy extruded products division decreased by 13.8% to RMB1,293.3 million, accounting for 87.1% of total revenue in FY16. The decrease was partially offset by revenue of RMB182.0 million from the group’s aluminium alloy stretched plates division for the period from July 27, 2016 to December 31, 2016. This newly-acquired business contributed 12.2% of total revenue for the year.
Within the aluminium alloy extruded products division, the transport industry was the largest revenue contributor, accounting for 65.1% of the division’s revenue in FY16, with the power industry and others segment accounting for the remaining 12.7% and 22.2% respectively. The others segment comprised mainly the supply of aluminium alloy rods and other specialised profiles for various other industries.
The group’s overall gross profit margin increased from 26.9% in FY15 to 29.7% in FY16, due to a higher gross profit margin of 30.0% achieved at the group’s aluminium alloy extruded products division, compared to 27.0% in FY15.
Other income comprising mainly interest income, income derived from the disposal of scrap materials and government subsidies received, which rose 72.2% from RMB23.8 million in FY15 to RMB40.9 million in FY16.
In its outlook, Midas says China’s railway expansion plans, together with its “One Belt One Road” initiative represent significant infrastructure and construction opportunities in the country and overseas markets for businesses. The group expects to capitalise on the positive trends in the industry, to tap onto its business networks and to actively prospect for new market opportunities within China and globally.
Shares of Midas closed at 26 cents.
