The share price of SGX Mainboard-listed Chasen Holdings rose as much as 10% after it announced it has secured a RMB50 million (S$9.7 million) contract. 

The trading range this morning was 7-7.4 cents, up from the close of 6.7 cents yesterday.

Chasen's wholly-owned PRC subsidiary, Chasen (Chuzhou) Hi-Tech Machinery Services Pte Ltd, clinched the contract to provide move-in services for a 6th Generation Active Matrix Organic Light Emitting Diode (AMOLED) plant in Hefei, Anhui Province, PRC.

AMOLED is a type of organic light emitting diode (OLED) display technology that is used mainly in smartphones.

equipment relocateChasen workers relocating sophisticated machinery. This requires state-of-the-art material handling equipment and specialised worker skills. Photo: Company
Chasen said the project win reflects a recovery in project implementation in China.

The timing is positive given that Chasen said in its 2QFY2020 financial results announcement that it "has commenced preparation for the listing of its PRC operations on a regional stock exchange."


The newly secured project will run for a year from December 2019 to November 2020.

Stock price

7.3 c

52-week
range

6.4 – 10.5c

PE (ttm)

9

Market cap

S$28 m

Price-to- book

0.4

Dividend 
yield 

10%

1-year return

-8%

Source: Yahoo!

It is expected to have a positive impact on Chasen’s results from the fourth quarter of the financial year 2020 ending 31 March 2020 (Q4FY2020).

Chasen said the contract win is a welcome development at a time of continued economic slowdown in the region which has affected the Group’s performance in the quarter ended 30 Sept 2019 (ie, Q2FY2020).

Revenue in Q2FY2020 declined to S$27.9 million from S$33.1 million in Q2FY2019, due to lower revenue from the Specialist Relocation Business Segment which faced a delay in a project in the U.S., as well as lower contribution from PRC market.

• The drop was offset by higher revenue from the Third Party Logistics Business Segment.

Net profit attributable to shareholders fell 96% to S$0.05 million (Q2FY2019: S$1.3 million).

JustinLow“We are pleased to have secured this sizeable project for our Specialist Relocation business segment in the PRC. This is a sign of the expected pick-up of project implementation in the country, and we are confident that we will see a better performance for the business segment in the coming quarters.”

-- Low Weng Fatt (photo),
Chasen’s Managing Director and CEO


Share Prices

Counter NameLastChange
AEM Holdings1.9900.030
AusGroup0.0250.001
Avi-Tech Electronics0.3450.015
Best World Int.1.360-
CEI0.8550.030
China Sunsine0.3400.005
CNMC GoldMine0.1820.005
CSE Global0.3900.015
Eagle HTrust USD0.137-
Food Empire0.5250.020
Golden Energy0.185-0.001
GSS Energy0.0570.004
ISDN Holdings0.1700.018
ISOTeam0.1280.005
JB Foods0.4500.025
KSH Holdings0.2900.005
Miyoshi0.0260.001
Moya Asia0.0580.003
Nordic Group0.2200.010
Oxley Holdings0.2250.015
Procurri0.2400.005
REX International0.1200.010
Riverstone1.1400.020
Roxy-Pacific0.3300.020
Sing Holdings0.3250.015
SingMedical0.2200.015
Straco Corp.0.480-0.010
Sunningdale Tech0.9200.045
Sunpower Group0.4150.025
The Trendlines0.089-0.002
Tiong Seng0.148-0.002
Uni-Asia Group0.4300.030
Yangzijiang Shipbldg0.920-

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1050 guests and no members online