Media Release
Chasen Holdings Wins S$10.2 Million Relocation Contract in China
Singapore, 30 July 2018 SGX Mainboard-listed Chasen Holdings Limited ( Chasen or the Group), which offers turnkey relocation, third-party logistics as well as technical and engineering services, said today its subsidiary in the Peoples Republic of China has secured a RMB51 million (S$10.2 million)
contract to help fit out a state-of-the-art flat panel display manufacturing plant in Chuzhou, Anhui Province.
Chasen Hi-Tech Machinery Services Pte Ltd, which is based on Chuzhou, will provide move-in, warehousing and related logistics services including rigging for the 8.6th Generation thin-film transistor liquid-crystal display (TFT LCD ) manufacturing plant. The project will run for 16 months from September
2018 to December 2019.
Mr. Low Weng Fatt, Chasens Managing Director and CEO, said: This is the first project Chasen Hi-Tech has secured in the same neighbourhood since it relocated to Chuzhou from Shanghai in 2017. Its ability to so quickly land a contract of this scale in Chuzhou reaffirms our established specialist relocation track record in China. We expect this project to contribute positively to our overall results for the current and subsequent financial years.
The project in Chuzhou comes just a month after the Group announced that all three of its business divisions had secured more than S$38 million worth of contracts in total across Asia and in the US.
- End of Release -
Below are 2 extracts from an article on Chasen as appeared in the Business Times 12 July:
Extract 1
Also on Chasen' s plans are potential spin-offs of its subsidiaries, which it believes will be able to unlock their value, as the sum of its parts is currently worth more than the whole, non-executive chairman Eric Ng told media and analysts in a Wednesday briefing.
Extract 2
Asked if it is pursuing these strategies to lift its six-month volume-weighted average stock price to at least 20 Singapore cents - one of the requirements before it can exit the watch list, Mr Ng said the company also has other ways to boost its value, either by finding investors for its subsidiaries, or listing them.
" We are probably looking at both ways. This year, we will focus on this and probably you can look forward to some announcements. We have three potential subsidiaries to do this with - two in China and one in Malaysia. We are looking at the Hong Kong Stock Exchange Gem board."
1st quarter ' 19 result just out.
Revenue up 1% from S$31.2 mil to S431.5 mil.
Profit up 97% from S$0.755 mil to S$1.487 mil.
Below a quote from the management:
Quote
The Group is committed to carrying out the various initiatives outlined in a corporate and business update released on 11 July 2018, to further improve its financial performance and create value for shareholders. Having achieved record revenue of S$127.9 million in FY2018, the Group has set $200 million as a revenue target by 2020. It will seek to achieve this by scaling up the Specialist
Relocation business in China, Malaysia, Vietnam and the US growing the cross border third-party logistics business and further streamlining the Singapore-based Technical and Engineering business to optimise costs and improve productivity.
In the meantime, the slew of new contracts announced totaling $48.2 million secured in recent months in Asia and the US, together with its recurring revenue will underpin the Group's financial performance in FY2019 and beyond.
The Group is also hopeful of prospects in the US, where it has just started on the third phase of a major relocation project for an automobile manufacturing plant in the state of Nevada. Its San Jose based marketing team is also in discussion with several US and Asian owned manufacturers keen to on-shore some of their non-US based operations.
As previously disclosed, the Group will redevelopits existing premises in Singapore into a multi-storey warehouse cum office complex over the next 18 months. With the proposed 5-fold increase in storage capacity and better amenities in the new facility, the Group should optimize its supply chain and
operational efficiencies to generate positive cash flow and enhance our competitive advantage.
Barring unforeseen circumstances, the Group expects to remain profitable for the current financial year.
