SINGAPORE (May 3): Pan United Corporation, the cement and ready-mixed concrete (RMC) supplier, posted $3.1 million in earnings for the 1Q ended March, 19% down from $3.8 million a year ago.
Revenue for the quarter fell 14% to $153.2 million compared to $178.5 million in the previous year, mainly due to lower RMC and cement demand and selling prices in Singapore in spite of higher sales volume in the group’s overseas RMC operations.
In its 1Q financial filings released on Wednesday, Pan United suggests the lower revenue is in line with the Building and Construction Authority’s (BCA) projections for FY17, which included lower RMC demand in Singapore of 12-13.5 million sq m compared to 14 million sq m in 2016.
In the group’s ports division, cargo volumes handled in Changshu Xinghua Port and Changshu Changjiang International Port grew 6% y-o-y, which partly mitigated the lower revenue from the concrete & cement (C&C) division.
Looking ahead, Pan United expects C&C market conditions in Singapore to remain challenging amid softer demand, and says it will continue on its regionalisation thrust to develop new markets in Vietnam, Malaysia and Indonesia for longer-term growth.
The group adds that it has particularly leveraged on its market leadership in Vietnam’s Ho Chi Minh City, as well as on its strong track record in Singapore, to broaden its base of C&C related projects in Vietnam.
With regards to its ports division, Pan United says it will continue its efforts to expand cargo volume and optimise cargo mix, while also looking to enhance revenues by providing value-added services such as warehousing in its role as a logistics hub port.
As at 4.13pm, shares of Pan United are trading 2.56% higher at 72 cents.
