Hafary

Hafary: FY14 net profit tumbled 64% y/y to $8m from an absence of $23.8m disposal gain on development property, while revenue improved 11.3% to $92.7m, buoyed by general (+6%) and project (+17%) segments, on higher demand of surfacing materials. Excluding the gain, profit before tax slumped 21% from the challenging business environment, as gross profit margin declined 3 ppt to 37.3% on a lower sales mix in project segment and commencement of depreciation of its main warehouse at Changi. Despite the discernible drop in resale property transactions after a series of property cooling measures, Hafary's general segment saw a slight improvement in sales volume, attributed to its ramp-up of marketing efforts and widening of customer base. Meanwhile, the growth in project segment came from higher volume of deliveries of tiles for use in HDB developments under the BTO scheme and Home Improvement Programme, as well as private developments- Hedges Park and Parkland Residences. Management declared final DPS of 0.3¢, bringing FY14 total to 1.3¢ (FY13: 6.5¢).