Report Date and Financial Year
The annual report is dated 23 September 2024 and covers the financial year ending 30 June 2024 (FY2024).
Financial Highlights
- Revenue: $55.1 million, a decrease of $4.0 million compared to FY2023.
- Profitability: A net loss of $5.5 million was recorded in FY2024, compared to a profit of $0.7 million in FY2023.
- Gross Profit Margin: Improved to 21% in FY2024 from 19.7% in FY2023.
- Earnings Per Share (EPS): Negative at -2.31 cents, a decline from 1.23 cents in FY2023.
- Net Asset Value (NAV) Per Share: Decreased to 59.74 cents from 64.47 cents in FY2023.
- Return on Equity (ROE): Dropped to -3.9% in FY2024 from 1.9% in FY2023.
- Current Ratio: Improved to 4.6 in FY2024 from 3.8 in FY2023, indicating strong liquidity.
Dividends
- The company has proposed a final dividend of 1 cent per share, subject to shareholders’ approval at the upcoming Annual General Meeting (AGM) on 22 October 2024.
Special Activities and Profitability Improvement Actions
- Resilience in the Semiconductor Industry: Despite challenges in FY2024, the company is exploring opportunities to expand its product and service offerings in the semiconductor sector. The Distribution and Services Solutions (DSS) segment remained profitable, showing signs of resilience.
- Supply Chain Adjustments: Strategic adjustments were implemented to enhance supply chain resilience, though the impact was limited by external factors like delivery disruptions.
- Egg Farm Project: The company is working on developing Singapore’s fourth egg farm, aiming to increase local food production. However, delays and rising costs due to supply chain disruptions and increased biosecurity requirements have impacted the project’s progress.
- Sustainability Efforts: A new climate change transition plan has been developed to address climate-related risks, aligning with the company’s sustainability goals.
- Focus on Expanding Markets: The company aims to broaden its DSS business by collaborating with Chinese equipment suppliers and expanding into Southeast Asian markets.
Notable Points for Investors
- Impairment Losses: Significant impairment losses, including a $4.2 million impairment on goodwill for the egg farm project and a $0.5 million impairment on other intangible assets, have impacted the company’s profitability.
- Dividend Policy: Despite the challenging results for FY2024, the company remains committed to maintaining its dividend payout.
- Market Outlook: While there are positive projections for the semiconductor market in FY2025, potential challenges like geopolitical tensions and supply chain issues may affect performance.
Recommendations for Investors
- Current Shareholders: Considering the company’s focus on long-term growth, investments in new markets, and its commitment to dividends, shareholders may hold their positions while monitoring the company’s efforts to improve profitability and mitigate risks.
- Prospective Investors: Those not currently holding shares may wait for further developments, particularly in the company’s expansion strategies and market recovery efforts, before considering an entry. The outlook for FY2025 suggests opportunities, but there are uncertainties due to market volatility and ongoing project challenges.
Disclaimer
The above recommendations are based solely on the content of the annual report and market conditions as described therein. Investors should conduct their own due diligence or consult with a financial advisor before making any investment decisions.
