Post Reply
81-87 of 87
Announced during lunch break
Mainboard-listed Norelco UMS Holdings Limited ("Norelco UMS" or "The Group"), a global contract equipment manufacturer for the semiconductor, hard-disk drive and other industries, has reported a 328% rise in net profit to S$13.1 million on a 15% increase in revenue to S$43.9 million for the third quarter of FY06.
The sterling result was due largely to the improved semiconductor business and the $7.9 million gain from the disposal of its recycling business in Singapore.
For the first nine months of FY06, the Group?s net profit rose 123% to S$22.4 million accompanied by an 11% increase in Group turnover to S$128.4 million.
The Semiconductor division, which saw sales jumped 109.9% to S$102.5 million, contributed 80% of Group turnover. Contract Equipment Manufacturing (CEM) took up the balance of 20% for the 3 quarters of 2006.
Gartners, the world?s leading IT research house, has forecasted that the semiconductor industry will continue to enjoy strong growth until 2010. This bodes well for the company whose core strength is in this industry.
Geographically, the Group enjoyed robust sales increases in all its key markets, except for Singapore. Revenue from the US soared by 132.8% owing to a significant improvement in the semiconductor business. Other markets such as Malaysia and China and other regions also experienced vibrant growth of 96.6% and 47.9% respectively. Singapore, however declined by 62.7% due to smaller volume from the HDD sector.
On the Group?s performance to date, Mr Andy Luong, Group CEO said, "The Group has performed very well for the first nine months of FY06 as we benefited from the strong upturn and better margins in the global semiconductor industry. Our good results were also boosted by our strong client relationships with US-based manufacturers. The US market is now our largest and fastest growing market, up 132.8% to S$87.4 million compared with last year?s corresponding period. Meanwhile, we have plans to further scale up our Malaysian operations as we take advantage of the growing trend of global manufacturers shifting their production needs to Asia. Our Group?s expansion into the aerospace industry is expected to make contributions in mid 2007 onwards and this will provide a new source of income and a more balanced portfolio of higher value products and services for us.".
Mr Luong, who was recently named a finalist in the Ernst & Young Entrepreneur of the Year Award 2006, said, "The Group will continue to improve and upgrade its efficiency through operational and quality excellence. Barring any unforeseen circumstances, we expect the Group to remain profitable for the 4th quarter of the year."
Norelco?s financial position remains strong, with cash holdings at S$27.6 million and current ratio of 2.7 as at 30 September 2006.
Group EPS for the nine months improved from 2.61 cents to 5.82 cents, while its NAV per share also increased from 48.23 cents to 51.52 cents as at 30 September 2006.
Recently, the CEO has many of media coverages also there were afew round of share buy back. Positive sign !
Norelco expects robust growth in 2007, buoyed by strong chip equipment outsourcing orders, and aims to grow profit and sales by 50% annually in the medium term.
"We're ramping up production right now, and will continue to ramp up until the end of the September quarter, as we have more orders than we can ship -- we have quite a big backlog of orders that's good for at least the next two quarters," CEO Andy Luong told Reuters in an interview today.
"We've changed our customer mix this year, which will help our gross margins to improve, and benefit our bottomline." When asked if Norelco would be able to meet two analysts'estimates of a 46% and a 49.5% growth in 2006 net profit, Luong said: "It's possible, it's about there."
Its peers include ASTI and AEM-Evertech. Luong said it was the company's internal goal to grow its sales and earnings by 50% annually over the next few years, as it rides the global outsourcing boom by semiconductor machinery makers and diversifies into the high-growth aerospace equipment manufacturing business.
Norelco plans to invest US$20 million to set up its aerospace division and is in talks with some potential customers, Luong said. The division is expected to start contributing to group sales in 18 months.