Monday, October 29, 2012
Profit warnings: a) Anchun -- expects to incur a loss in 3Q12, due to price competition resulting in a decrease in gross margins, and higher operating expenses such as depreciation charges, due to under utilization of pdtn facility. b) Hengxin -- expects to record ~50% lower net profit yoy in 3Q12 , due to a weak mkt demand for RF coaxial cables, the group's main pdt segment. c) Frencken -- expects to report a loss in 3Q12 vs a profit in 3Q11, due to lower margins in the Mechatronics division, and higher pdtn overhead costs. d) BH Global -- expects to report a loss for 3Q12, due to lower revenues and gross margins in the Engg Services division, on the back of weaker Rupiah vs SGD and lower volume of business, and uncertainty of recovery of costs of variation orders arising from delay of a major project.