SINGAPORE (Aug 10): Teckwah Industrial Corporation announces a 47.2% increase in earnings to $4.0 million for the 2Q ended June, from $2.7 million a year ago.
This brings earnings for the first half of 2017 to $7.0 million, up 22.7% from $5.7 million a year ago.
Revenue for 2Q17 grew 3.3% to $44.9 million, from $43.5 million a year ago.
Revenue from its non-print business rose 6.4% in 2Q17 to $20.3 million, mainly due to increased demand from some existing customers in Singapore and China.
Revenue from its print-related business, which accounted for 54.3% of total revenue, edged up by 0.7% to $24.4 million.
As at end June, cash and cash equivalents stood at $36.8 million.
Looking ahead, the group says it expects stiff competition in the region to result in downward pressure on pricing, even as rising operating costs exert further pressure on its margins.
“The management will continue to take steps to be competitive and seek new upstream activities to widen revenue sources, in addition to managing its cost structure,” Teckwah says in a filing to SGX on Thursday.
Barring any unforeseen circumstances, the group says it expects to remain profitable for FY2017.
The group has declared an interim dividend of 0.5 cent per share for the period.
Shares of Teckwah closed 1 cent lower at 50 cents on Thursday.
