Sin Heng

Sin Heng: 1QFY14 net profit rose 16% y/y to $3.8m as revenue grew 10% to $47.4m on higher volume of cranes and aerial lifts sold, which offset the drop in equipment rental business due to the completion of some local projects. Gross margin was maintained at 16.8%. Higher selling, administrative, and other operating expenses (mainly from unrealized forex loss) were offset higher servicing income and unrealized fair value gain on forward currency contract, as well as lower finance cost from the partial repayment of bank loans and finance leases. Management is cautiously optimistic that the key markets which the Group operates remain encouraging. NAV at September stood at 21.38 ¢, which translates to P/B of 1.0x. Annualized 1QFY14 P/E stands at 7.2x