GSS Energy’s precision engineering business continued to prove robust, with earnings up 21.1% to S$2.3 million in 1Q2018.

The business contributed all of the group's revenue, which rose 12.4% to S$24.4 million.  (The other business, oil & gas, is expected to deliver first revenue in the months ahead).

Group gross profit margin in 1Q18 was maintained at around 23.3% while gross profit increased 11.9% to S$5.7 million.

Watch 2-minute video of visit -->

 

Stock price 

15 c

52-week range

13  – 19 c

PE (ttm)

16.7

Market cap

S$74 m

Shares
outstanding

496 m

Dividend 
yield 

--

1-year return

-7%

   Source: Yahoo!

The Group incurred higher distribution and selling expenses of S$2.4 million and higher administration expenses of S$1.6 million comprised mainly of handling more orders under the precision engineering business, O&G business expenses and corporate expenses for share options.

Operational expenses of around $1.0 million were also incurred for the O&G business.

Overall, the Group’s net profit attributable to shareholders was about S$0.7 million.


The Group had S$4.9 million in cash and cash equivalents as of 31 March 2018. Net asset value per share strengthened by 3.2% to 8.99 Singapore cents.

BUSINESS UPDATES AND OUTLOOK
In April 2018, the Group acquired a piece of land in Batam to build a factory and move its production to the new location. This new facility is to help meet expanded demand.

The Group has invested considerable resources in exploring the Trembul Operating Area, resulting in the discovery of commercially viable hydrocarbon resources at Well SGT-01.

Discussions are ongoing with various parties to finalise an agreement for offtake of this gas.

The Group has commenced exploratory activities in a nearby Well P1 and is waiting for results.

350 SydneyYeung 10.14CEO Sydney Yeung is the largest shareholder of GSS Energy with his 18.28% stake. NextInsight file photo.Sydney Yeung, CEO of GSS Energy, said, “We look forward to delivering the Group’s profitability for FY 2018 based on the positive outlook for our precision engineering and O&G business model.

"Our precision engineering business continues to provide steady income and profitability. The fully operational and expanded factory in Changzhou allows us to take on larger orders with greater production capability directing towards higher valued output.

"In the O&G business, we are working to close the operational and financial arrangement to commercialise our fields at Trembul.”


Share Prices

Counter NameLastChange
AEM Holdings0.8650.065
Alliance Mineral0.3200.010
AusGroup0.040-0.001
Avi-Tech Electronics0.380-
Best World Int.1.210-0.010
China Sunsine1.2000.020
DISA Limited0.008-
Dutech Holdings0.250-
Federal Int. (2000)0.270-
Food Empire0.550-
Geo Energy0.225-
Golden Energy0.305-0.010
GSS Energy0.1340.004
Heeton Holdings0.520-0.005
ISOTeam0.325-0.005
KSH Holdings0.6000.005
Lian Beng Group0.500-
Miyoshi0.0550.003
Nordic Group0.5050.010
Oxley Holdings0.340-
REX International0.0420.001
Riverstone1.1100.010
Roxy-Pacific0.430-
Serial System0.145-0.001
Sing Holdings0.410-
Sino Grandness0.200-
Straco Corp.0.7400.010
Sunningdale Tech1.4300.020
Sunpower Group0.585-0.010
The Trendlines0.102-
Tiong Seng0.330-
Trek 2000 Int.0.113-0.001
Uni-Asia Group1.340-0.010
XMH Holdings0.280-
Yangzijiang Shipbldg1.060-0.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 872 guests and no members online