XMH HOLDINGS is proposing a final cash dividend of 2 cents per share after it posted a 45% year-on-year surge in FY2016 profit after tax to S$7.9 million.  FY16 results briefing. Photo: Colin Lumi) Government grants and rebatesii) Rental income generated from sub-letting part of the factory building in Tuas iii) Forfeiture of deposits from customers iv) Sales agent commission received XMH recorded net finance income of S$4.0 million in FY2016 as compared to approximately S$541,000 in FY2015. The higher net finance income was due mainly to net foreign exchange gains of approximately S$4.9 million in FY2016, as compared to S$444,000 recorded in FY2015. |
Below are excerpts of questions raised at the meeting and the replies provided by Mr Tan and Finance Director Jessie Koh.
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Q: How have your various business segments performed?
Project revenue has been increasing. Mech-Power’s revenue has increased year-on-year. ZPA’s revenue is at record levels over a 5-year period -- S$26.5 million in FY2016 compared to up to about S$21 million previously.
This increase mitigated the dip in revenue from distribution and after-sales services.
Q: Are you making headway in any new markets?
We have an increase of orders from the Maldives. Even though this is a relatively small country, the quantum of year-on-year increase was significant.
We have had dealers represent us in the Maldives for several years but it was quiet until recently when bank loans to the marine sector became more accessible.
Q: What portion of other income is from rental of excess capacity at your premises?
We have a 7-storey building with 3 floors earmarked for external tenants.
| Stock price | 43.5 cents |
| 52-week range | 34 – 80 cents |
| PE (ttm) | 6.1 |
| Market cap | S$48.4 million |
| Dividend yield (FY16) |
4.6% |
| NAV | 62 cents |
| Source: Bloomberg, Company |
Other income in FY2016 included S$300,000 for 2 to 3 months of rental income from less than half of this space.
We have found tenants for 75% of this space, and some of them will move in this August.
We are negotiating terms and conditions with prospective tenants. I believe the remaining space will be fully taken up soon.