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A-Sonic Aerospace Ltd, through one of its wholly owned-subsidiary, A-Sonic Aviation Solutions Pte Ltd, has incorporated a wholly-owned subsidiary, A-Sonic Airline Management Pte Ltd. A-Sonic Airline Management has an initial paid up capital of US$1. The principal businesses of A-Sonic Airline Management are airline management and aircraft maintenance management.
/sgx
A-SONIC Aerospace has bounced back into the black, thanks to improving contributions from its businesses and the sale of one of its businesses.
| Ms Tan: The CEO of the aerospace and logistics specialist says that the company has emerged stronger by sticking to its strategy |
The company, which was placed on the Singapore Exchange's watchlist in September last year after racking up three years of losses, posted an FY2010 fourth-quarter profit of US$2.05 million, compared to US$1.52 million for the October-December 2009 period. Revenue for the three months improved by 27 per cent to US$75.3 million.
For the full year, net profit came to US$11.22 million, against a net loss of US$1.72 million for FY2009. About US$8 million of this profit came from the sale of one of its distributorships in North Asia early last year.
Still, a sharp 78 per cent leap in the top line to a record US$278.4 million suggested that the company - which operates logistics and aerospace component distributorships in 34 cities and 14 countries, spanning four continents - is seeing a reversal of fortunes after chalking up impairment losses for the previous three years.
'We stayed true to our belief,' CEO Janet Tan said in a statement. 'Even during the two toughest economic contractions in 2008 and 2009, and the most uncertain of times, we remained resolute that we should invest in our business for future sustainable growth. By sticking to our strategy, we emerged stronger in 2010.'
The company was sitting on cash of US$31 million (net cash US$22 million) and had a gearing of just 20 per cent.
With earnings per share at 2.09 US cents (2.7 Singapore cents), versus its share price of 5.5 Singapore cents, the stock is trading at a price-earnings ratio of under two time
The company is upbeat on its prospects. 'We have started to reshape the logistics business model to include international and domestic multi-modal transportation, customs clearance, warehousing and distribution,' it said in a statement. It added that it would continue to make strategic investments to ensure sustained long-term growth.
Although logistics now accounts for 95 per cent of its business, A-Sonic recently moved to position itself in the aircraft leasing business. It has acquired three pre-owned 173-seater MD11 narrow body passenger planes which are being retrofitted with new interiors and engines.
Ms Tan said that they would be leased to airlines and operators in North and South Asia once they are certified by the relevant authorities.
While business seems to be back on track, the big question in shareholders' minds is when the company would be taken off the SGX watchlist. Besides profitability, companies on the watchlist also have to meet the requirement for their market capitalisation to be above $40 million for 120 days prior to the removal of the watchlist status. Currently, A-Sonic's market cap is just short, at some $38 million.
It remains to be seen if the company's improving operating numbers will spur more interest in the stock in the days and weeks ahead, thus helping it meet this critical requirement.
Made profits the recent quarter and has proposed a bonus issue of warants... can anyone explain if this is a good buy now at 9 cents? thank u.
Rotational play on the way ....8c .....worth a bet
| A-Sonic | ___3 mths ended Sep 2009___ | Net Loss (S$M)___ | -$1.19 |
is the result out ? bought 100 lots
Travel industry performance is closely tied to economy.
waiting to outperform..heehee
The company will post its 1st half FY 2007 results within 60 days.(Before 31 August 2007)
Fundamental of this counter its still strong. It should give a set of sterling 1st half results. Investor should re-look into this counter. It had been neglected for quite sometimes since its merged with Air-Ocean..
After merging with the A-ocean, this counter had been neglected for quit sometimes even through it had delivery a steerling results.....investors might be can re- consider this counter.