Yongmao is making a comeback in Australia, where its cranes are being used to build the Sunshine Coast Public University Hospital. Photo: Company
Yongmao is known for its capability in customising high tonnage tower cranes. Above: high tonnage Yongmao luffing crane. NextInsight file photoYONGMAO HOLDINGS is foraying into Taiwan, and revisiting its market presence in Australia and North America, where construction activity is booming.
These pockets of growth outside its main market, China, have mitigated the impact of a PRC property slump on its earnings: FY2015 gross profit was down 1.1% year-on-year at Rmb 245.4 million.
The good news is: the Group has proposed a final dividend that is 60% higher compared to the previous year, on the back of net profit growth of 36.6% year-on-year to reach Rmb 77.9 million.
FY2015 net profit was boosted by a fair-value gain of Rmb 12.1 million from the restructuring of its shareholdings in Tat Hong's PRC subsidiaries.
Its proposed 0.6 cent final dividend plus a 0.2 cent special dividend for FY2015, translates into a yield of 5.5% based on a recent stock price of 14.5 cents.
"We understand the importance of dividends to shareholders and want to reward those who have held on to our shares," said executive director and General Manager Sun Tian at a recent meeting with NextInsight.
"We are returning to a focus on export sales, our mainstay before the 2008 global financial crisis," said executive director and general manager Sun Tian. Photo by Leong Chan TeikThe Group posted a 20.5% growth in FY2015 revenue from Asia outside PRC to reach Rmb 272.8 million, or a third of Group revenue.
"Progress in economic co-operation between China and Taiwan is birthing a new market for PRC cranes in Taiwan," said Mr Sun.
"Cranes in Taiwan are relatively old because there has not been a regulatory limit on their lifespan," he added.
"With the attention on worker safety, there are talks that the government may impose limits on the age of cranes in use, giving rise to replacement demand."
Increased concern over worker and public safety is boosting demand for new tower cranes in Taiwan.
The Taiwanese are showing interest in Yongmao cranes as they are widely used in China and also enjoy a strong reputation in the global market.
Yongmao's cranes can be customised to handle lift loads of ultra high tonnage, and are less pricey compared to those manufactured in developed countries.
The Group is foraying into the Taiwanese market by offering crane rental and maintenance services.
It believes its crane rental presence in Taiwan will eventually translate into crane sales there.
