SINGAPORE (Nov 28): Nam Lee Pressed Metal Industries reported FY18 earnings of $12 million, 17.6% higher compared to FY17.
The company is engaged in designing, fabrication, supply and installation of steel and aluminum products like gates, door frames, hand-railings and laundry racks.
Group revenue increased 10.5% to $156.8 million mainly attributable to an increase in revenue from the aluminium segment.
Gross profit increased 5.4% to $29.3 million while gross profit margin decreased to 18.7% from 19.6%, mainly due to a change in product mix with lower margin.
Administrative costs increased 7.4% to $11.0 million mainly due to higher accrued personnel cost. Other operating costs narrowed 60.3% to $2.2 million mainly due to the absence of provision for one-time product replacement costs for a building product project in FY17.
Other income decreased 33% to $1.6 million mainly due to a net gain in derivative in FY17 while there was a net loss in derivative in FY18.
Nam Lee’s board of directors has declared a final and special dividends of 2 cents and 0.5 cent respectively.
See: Nam Lee still a stable yield play amid margin compression, says Phillip
In its outlook, the company expects its aluminium industrial product business to be affected by uncertainties in the global economy. In addition, intense market competition, continuing government cooling measures and tight labour market in Singapore continue to pose challenges and exert pressure on the profit margin of its building product business.
Nevertheless, the company expects to remain profitable.
Year to date, shares in Nam Lee have fallen from 41 cents to close at 38 cents on Wednesday.
