Tai Sin Electric 500 has reported earnings of $11.9 million for the 1HFY2023 ended Dec 31, 2022. This is 40.4% higher than the profit of $8.5 million during the 1HFY2022.
The higher earnings came on the back of a 31.33% y-o-y growth in 1HFY2023 revenue of $229.6 million. The higher revenue was due to increases across the group’s segments, except for its Testing & Inspection (T&I) segment.
Revenue from the T&I segment fell by 3.9% y-o-y to $14.8 million mainly due to the lower revenue from the non-destructive testing and heat treatment services in Indonesia. “This was mainly attributable to completion of projects and fewer sizeable new contracts being secured. Nonetheless, laboratory testing services and soil investigation and monitoring related works in Singapore recorded better performance as a result of higher business volume in construction activities,” says the group.
Meanwhile, the Cable & Wire segment grew by 45.8% y-o-y to $151.4 million driven by higher sales volumes from its Singapore, Malaysia and Vietnam markets. The increase in volume came as public and private sector construction activities continued to recover. Sales during the 1HFY2023 was also due to revenue contribution from a newly-acquired Malaysian subsidiary.
The (EMD) segment also grew by 14.7% y-o-y to $60.8 million due to stronger sales from the building & infrastructure as well as the chemical, oil & gas clusters.
Gross profit increased by 14.0% y-o-y to $35.2 million, although gross profit margin (GPM) for the period fell by 2.34 percentage points y-o-y to 15.34%. The lower GPM was due to higher deliveries of lossmaking projects which were secured when the copper price was low.
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Other operating income increased by 51.9% y-o-y to $3.8 million mainly due to fair value gain on derivative financial instruments of $1.996 million. This was recognised as other income during the six-month period as copper prices stood higher toward the end of the 1HFY2023.
Other operating expenses fell by 91.0% y-o-y to $348,000, mainly due to higher fair value loss on derivative financial instruments and higher loss allowance for trade receivables in 1HFY2022.
Finance costs increased to $1.1 million, about 2.4 times higher than $457,000 the year before mainly due to higher borrowings and higher interest rates for short-term bank borrowings.
Profit before income tax increased by 45.0% y-o-y to $14.9 million.
Earnings per share for the 1HFY2023 stood at 2.59 cents, up from the previous year’s 1.85 cents on a fully diluted basis.
As at Dec 31, 2022, cash and cash equivalents stood at $45.0 million.
An interim cash dividend of 0.75 cent per share, payable on April 3, has been declared. This is unchanged from the corresponding period the year before.
Shares in Tai Sin Electric closed flat at 40 cents on Feb 13.
