Since its customers mainly come from property development sectors, its revenue trend basically is similar to property development sector.
For last 5 years, it distributed dividend range 0.225c to 1.3c except for the year 2009. For recent quarterly report release, it had achieved lower revenue (-25%) and net profit (-75%) and has 0.41c EPS. The decline in turnover was due to lower revenue recognised on M&E contracts during the quarter. The decline in net profit are:
1. Lesser rental income after disposal of investment property at Jurong Port Road
2. Lesser Share of Associates' Result, especially from Ekarat Pattana, group's 20% associate in Thailand
Nonetheless, NAV stands at 24.32c and S$78M Cash pile due to liquidation of its two Thai Associates as well as dividend payment of $3.67M from EPPCO & Ongoing M&E oprations. The group now has S$156.5M worth of M&E engineering contracts, with completion dates ranging from 2013 to 2015.
Chart 1: 5 Year Share Price. Source: ShareInvestor.com |
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