Chasen

Chasen: Reported 4QFY13 loss of $8.0m compared to a gain of $521k in the previous year following a decline of 16% in revenues to $18.2m. The loss was attributed to its relocation business which saw a 62% reduction in revenue contribution due to a subdued environment compared to the previous year. Its third party logistics business also saw a dip of 7% due to competition. Consequently, Chasen saw its full year earnings plunge to a loss of $6.0m, compared to a gain of $7.3m the previous year, and revenues shrank 20% to $79.4m. The disappointing result was below consensus estimates of $2.9m and $81.7m for earnings and revenues respectively. According to Bloomberg consensus, Chasen has a 12-month TP of $0.30. Amidst its disappointing results, Chasen has bagged 7 new project wins, spanning 3 countries, worth $19.3m in aggregate. In China, the group’s Relocation division secured 3 projects worth Rmb14.6m comprising: move-in of eqpt and related services for an 8.5G TFT/LCD mnftr in Beijing and Shenzhen, and move-in of eqpt for a 6.5G TFT/LCD mnftr in Xiamen. These projects begin from May 2013 and collectively end by Oct ’13. Through the group’s Technical & Engineering division, it has also secured 4 project wins in Singapore and Msia worth $16.4m in total, comprising: i) cyclical replacement of chilled water AHU/CRAUs and fabrication and installation of base frames for ACMV eqpt for comms centres and underground rail stations in Singapore, ii) the construction, completion and maintenance of structural redevt works of a key govt complex and HQ building in Changi, iii) fabrication and supply of metal form curve beams and planter boxes for a general hospital and community hospital in Jurong and iv) construction of 3 storey terrace houses and semi detached houses in Klang, Selangor. These projects will commence from Apr 2013 and collectively end by Aug ’14. Mgt expects these projects wins to have a positive contribution to FYMar14 financials.