Chasen Holdings has secured two new contracts which it said would have a positive impact on its financial results for the FY starting 1 April 2019.
 
Its wholly-owned subsidiary, Chasen (Shanghai) Hi-Tech Machinery Services, has secured from a repeat customer two projects worth a combined RMB34 million (S$6.8 million).

Chasen will provide specialist relocation services for a state-of-the-art flat-panel display production plant and a semi-conductor fabrication facility.

With that, this month (Nov) alone, Chasen has announced three contract wins in China worth a total of S$16.7 million (see table below).

RELOCATION BUSINESS SEGMENT

1

Location / Nature of Project

Move-in services for the pilot line of a semi-conductor fabrication plant in Kunming, Yunnan Province

Value of Project

RMB9 m (approx S$1.8 m)

Duration

Jan 2019 to May 2020

2

Location / Nature of Project

Move-in services for Phase 1 of a 10.5-Generation TFT LCD cell and module manufacturing plant in Wuhan, Hubei Province

Value of Project

RMB25 m (approx S$5 m)

Duration

April 2019 to Dec 2019

3

Location / Nature of Project

Move-in and warehouse management services for a 8.5th Generation OLED manufacturing plant in Guangzhou.

Value of Project

RMB50 million (approx S$9.9 m)

Duration

Oct 2018 to April 2019

Stock price

7.5 c

52-week
range

6 – 8.5c

PE (ttm)

4

Market cap

S$29 m

Shares outstanding

387 m

Dividend 
yield 
(ttm)*

4%

1-year return

-3.9%

*Chasen does not have a formal dividend policy.
Data source: Bloomberg

Under the RMB9 (S$1.8) million contract for the semiconductor fabrication plant, Chasen will move equipment and machinery for the pilot line of the customer’s maiden wafer fab facility in Kunming, the capital of Yunnan province.

The project will run from January 2019 to May 2020 while the installation of the pilot line would be completed in four to six months from project commencement.

The other contract, from the same customer, worth RMB25 (S$5) million, requires Chasen’s move-in services for the first phase of a two-phase project for a Generation-10.5 thin-film transistor (TFT) LCD production plant in Wuhan, the capital of Hubei province.

Chasen will commence work on the first phase from April 2019 and complete it by December 2019.

Chasen’s financial highlights

FY (end-Mar)

2014

2015

2016

2017

2018

1H2019

Revenue
($‘m)

 101.5  

 98.8  

 93.5  

 106.2  

 127.9  

 64.7   

Net profit/loss attributable to shareholders($‘m)

2.5   

 2.2   

(1.5)

 2.6   

 5.5   

 2.8   

Justin Low
"As a company that specialises in moving sophisticated manufacturing equipment and fitting out production plants, we see a lot more room for us to grow as these industry-wide developments continue to unfold in China.”
--  Low Weng Fatt,
MD and CEO,
Chasen Holdings

Mr Low Weng Fatt, Chasen’s MD and CEO, said: “Growing demand for electronic and smart devices in China has been a major driving force behind the country’s flat panel display market.

"This is also fuelling the emergence of more wafer fabrication plants to meet the need for more microchips.

"This is the first time a TFT LCD customer is building its very own wafer fab to supplement its own requirements instead of procuring wafer chips from a third party supplier. We are optimistic in continuing with the remaining phases for both projects."


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