CosmoSteel

CosmoSteel: Achieved 4QFY13 net profit of $1.2m (-53% y/y), despite revenue growth of 24% to $33.6m. This was attributed mainly to an FX loss of $216k compared to the gain of $1.5m in 4QFY12, in spite of a $255k tax credit. The strong top line was due to higher sales from the energy and marine sectors (+27%), while gross profit margin declined to 19.0% from 25.9%, due to an allowance for slow-moving stock. This brought FY13 earnings to $6.4m (-42%) and revenue to $155.7m (0.4%). Group proposed a final dividend of $0.01/share, 20% lower than FY12's $0.0125. Notably, its cash of $20.4m (before paying FY13 dividend) might be an issue against its short term debt of $59.5m. Going forward, the group believes the energy and marine sectors to continue to be important markets for them, and expects intense competition within the industry. At $0.305, CosmoSteel trades at a steep 12.7x trailing P/E and 0.8x P/B, compared to steel peer BRC Asia's 5.2x trailing P/E.