Leveraging its extensive management experience on electronics trading activity.
The group can now better focus on the integration of the supply chain and operations after completing its acquisition of the entire distribution and trading entity arm of GSH Corporation and a 49%-equity stake of Achieva as it extends its regional distribution business beyond components such as chip sets to finished consumer products.
We believe these acquisitions will improve its revenue and economies of scale.
4Q14 sales increased by 23% yoy to US$268m, led by North Asia market with strong demand in the smartphone, consumer electronics, household appliances and automotive sectors. Gross margins improved by 0.1% pt yoy to 9% in 4Q14 due to increase in sales of higher margin products in Hong Kong and South Korea
Balance sheet remains healthy. Excluding purchase of investments, the group generated a positive free cash flow of US$12m in 4Q14 after improving its working capital requirement.
The board declared a higher 0.75 cts final dividend, compare to 0.31 cts from last year. This bring total dividend yield for 2014 to 7.3%.
Full report here. Excerpts from analyst's report