Tai Sin Electric has announced a profit attributable to shareholders for the FY2022 of $22 million, up 27.3% year-on-year (y-o-y) from $17.3 million in FY2021.
Earnings per share for the full year have been announced at 4.78 cents on a fully diluted basis, an increase from 3.75 cents per share the year before.
The company’s revenue for the FY2022 stood at $379.1 million, with a sales cost of $299.0 million, a revenue increase of 27.0% from FY2021 compared to the smaller 16.3% increase in sales cost.
For the six months ended June 30, Tai Sin reported revenue of $204.2 million, up 24.72% from $163.7 million in the 2HFY2021. Revenue growth came from its cable and wire segment and electrical material distribution segment, on account of an expansion in both public and private sector construction activities and sustained global demand for semiconductors and semiconductors equipment, says the company.
Tai Sin’s gross profit (GP) almost doubled to $80.1 million in the FY2022 from $41.4 million in FY2021, a 93.5% y-o-y increase, taking its GP margin grew from 13.86% in FY2021 to 21.12% in FY2022. This was attributed mainly to the reversal of provision for onerous contracts of $10.130 million, offset partially by deliveries of low margin projects that were secured two to four years ago when the copper price was low.
For the FY2022, Tai Sin’s cash and cash equivalents decreased to $29.2 million compared with $39.3 million at the end of the previous financial year. The company’s net cash used in operating activities of $7.4 million was attributed to an increase in trade receivables and inventories and payment of income tax offset by operating profit before working capital changes, decrease in contract assets and other receivables and increase in trade and other payables as well as advances received from customers.
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The company has announced interim tax-exempt dividends of 0.75 cents per ordinary share for FY2022. The final tax-exempt dividend announced for FY2021 came to 1.5 cents per ordinary share.
The ongoing geopolitical tensions, inflationary pressures and aggressive tightening of monetary policy are expected to weigh on the macroeconomic environment, increasing risks of a global recession and amplifying the volatility in commodity prices and exacerbating supply chain disruptions, says Tai Sin. It warns that this could result in higher input costs amidst a tight labour market.
However, it remains “cautiously optimistic” of the industry prospects, particularly in the industrial, infrastructure and energy sectors where demand is expected to remain resilient because of secular growth trends. Tai Sin says it will also remain vigilant in managing the ongoing price tension arising from the global shortage of copper, volatile copper prices, elevated shipping and freight costs, as well as growing domestic wage pressures.
Shares in Tai Sin Electric closed at 38.5 cents on Aug 26.
