Hupsteel

Hupsteel: 4QFY15 earnings plunged deep into the red as it reported a $9.3m net loss compared to 4QFY14’s net profit of $1.1m, taking FY15 net loss to $8.0m versus FY14 net profit of $3.6m. Revenue for the quarter slumped 36.1% to $17.5m on poor demand for steel plates from the shipbuilding, and oil & gas sectors as well as intense competition. Gross margin sank 18.4ppt to 0.1% as it wrote down the value of inventory by $3.3m. Bottom line further weighed by $4.6m goodwill impairment on its structural steel business as well as a $1.9m provision for doubtful debts. Final dividend of 0.1¢ (4QFY14: 1¢). NAV/share at $0.30.