Unionmet

Unionmet: Profit turnaround in 2Q with US$300k (from loss of US$486k in 2Q12) as a result of a tax credit received from the cost of new assets purchased on relocation. This arose due to a revision in the tax regulation on relocation policy. Excluding the tax credit, Unionmet made a loss of $333k despite a 179% increase in revenues to US$8.8m. Higher expenses were incurred mainly due to increased travelling expenses. Group reported the uncertain demand environment and pricing volatility on commodities and expect 2H13 to continue to be tough. At the last closing price of $0.055, Unionmet trades at 0.9x P/Cash and 0.7x P/B.