After the FY15 results briefing on Monday (14 March), analysts checked out the new HQ of XMH. In the photo: They are at Z-Power Automation's factory with Ang Cheng Siew, MD of Z-Power (in black T-shirt). In the background are marine switchboards produced by Z-Power.
Photo by Leong Chan Teik
THE THREE subsidiaries of XMH Holdings, having moved into a new building and being together for the first time, are increasingly able to get their act together to pitch for jobs as a group.
XMH finance director Jessie Koh with Maybank Kim Eng analyst Simeon Ang. Photo by Leong Chan Teik The building in Tuas, which cost $56.6 million to construct on land which cost $8.1 million to acquire, houses:
1) XMH's original business of being a diesel engine, propulsion and power generating solutions provider for marine and offshore use.
2) 80% subsidiary Z-Power Automation, which was acquired in 2015. Its core business is the supply of marine switchboards.
3) Mech-Power which was 100% acquired in 2013. It provides standby gen-sets for industrial buildings.
XMH Holdings has sent a sales team to pitch on behalf of its three subsidiaries for work in a shipyard in Vietnam which is making newbuilds, said Mr Elvin Tan, executive chairman and CEO of XMH Holdings.
| “Now that we are housed under one roof, we hope to capitalise on the larger working area and overall coordination between MPG, ZPA and ourselves (XMH)." – Jessie Koh, finance director. |
The same approach will be taken when XMH approaches other shipyards for business.
In some tenders when a subsidiary wins, it has sub-contracted work out to another subsidiary. In Indonesia, Xin Ming Hua has introduced Z-Power to its shipyard clients.
"The Group will continue to make concerted efforts to pitch for projects as a whole, thus optimising the enlarged client base, maximising revenue and reducing costs."
For more pictures of the new HQ, see: XMH: Marks milestone with new 7-storey building in Tuas
 Elvin Tan, executive chairman & CEO of XMH Holdings. NextInsight file photo.Highlights of the results for 9MFY16 ended Jan 2016: Revenue increased by 12.4% year-on-year to S$76.5 million for 9M2016, primarily supported by the increase of S$21.2 million in “projects” business segment revenue, following the inclusion of ZPA’s results. The increase arose primarily from the progress of the projects clinched by Z-Power Automation and Mech-Power and their completion during the reporting period. However, this was partly offset by lower revenues from “distribution” and “after sales” business segments. Gross profit margin declined to 25.6%, from 28.9% primarily due to "more intense competitions in the various businesses we operate," said XMH Holdings finance director Jessie Koh. Depreciation for the new HQ started in Jan 2016 and runs at about $500,000 per quarter. Overall, the Group reported net profit of S$4.7 million for 9M2016, a decline of 2.5% year-on-year.
Ms Koh said: "The current global economy continues to weigh down our various businesses as greater uncertainties unfold. Particularly in the offshore and marine industry, where we witnessed activities coming to a halt as sentiments remain weak. "Our business has inevitably been affected as our 3Q results has shown. I must say, our acquisitions did place us on a different platform, which assisted us with a wider geographical coverage and products offering. That has helped our performance." The Powerpoint materials used at the results briefing are here. |
