Chasen Holdings

Chasen Holdings: Grp has again demonstrated its ability to grow. With the latest financial ar's result, grp’s rev has shot up about 5X from just $20.8m in 2007, the year it launched its IPO. Net profit has similarly risen, from $2.0m to $7.3m. Sharing insights into the business, Chasen’s lead independent director note that there was pent-up demand from MNCs which had deferred the relocation of grp’s operations during the 2008/2009 global financial crisis. Rev from China, in particular, shot up to about $20m out of the Group's $44.5m in relocation business revenue in FY12. Going forward, Chasen is expecting delays in clients' relocation moves to China due to the euro crisis. All in all, Chasen is hopeful that its relocation business will be able to maintain the rev level it achieved last year. The strategic direction for Chasen is increasingly to develop its capabilities to offer turnkey solutions to customers -- build their plant, put in facilities, move the manufacturing equipment over, etc. Given the FY12 profitability, some investors expect 0.6 c/share in dividend, unchanged from FY2011 #HI-P: Major customer RIM which has already fallen 74% in the past year dived another 15% in after hours trading after warning of a potential loss this qtr, due to continued market share loss to Apple and Google’s Andriod phones. RIM is planning to cut 2-3K jobs and warned that their financial performance will remain challenging for the next few qtrs. Hi-P is reducing their dependence on RIM from 60% in the last year to less than 40% this year, replacing them with faster growing customers such as Apple, P&G, Colgate, Seagate as well as new customers such as Nike and Amazon. Mgt is tripling their capex to US$180mln this year to cater to the growing demand from their non-RIM customers.