Nam Lee

Nam Lee: FYSep12 results. Revenue at $155.1m, -7% yoy, mainly due to decrease in sales volume of aluminium industrial pdts. Nevertheless, gross profit increased 11% to $34.9m, mainly due to shift toward higher margin pdts. Admin expenses also decreased 4% to $12.7m, mainly due to decrease in accrued personnel expenses and share option expenses. This resulted in net profit at $13.9m, +27% yoy. Co declared 1ct final div + 1ct special div. Total div for the yr is 2cts (vs 1.5cts last yr), translating to 6.0% yield at $0.335/sh last traded. On outlook, the group notes the economic instability in Europe has dampened demand for the group’s aluminum industrial pdts. Nevertheless, it notes it has been able to mitigate this impact through demand for its building pdts. Expects mkt competition in the building pdts industry and increasing business cost to exert pressure on profit margin. The group will continue to source for building pdts with higher margin and manage its costs to achieve profitability. The co’s balance sheet remains strong, with net cash comprising $51m (or $0.216 /sh). The stock trades at 0.7x P/B, 5.7x P/E. The stock is unchg at $0.335, hovering at a multi year high.