Thursday, November 27, 2014
Cosmosteel: Positive 4QFY14 results with revenue and net profit growing 23% and 74% y/y, respectively. Gross margin also improved from 18% in 3QFY14 to 20.1% in 4QFY14. During FY14, certain regions such as Australia, Singapore (+43%) and Vietnam (+110%) saw strong growth while mkts such as Brunei and Japan saw lower revenue. On the whole, the company's strong level of geographical diversification helped to offset soft or one-off projects in further away regions such as ALgeria (via a Japanese customer). Voyage remains constructive on CosmoSteel's performance at least into 1HFY15, with ongoing projects in Singapore and Vietnam continuing to be supportive of revenue levels. Projects still make up 60-70% of group revenue. Mgt also remarked they have been receiving new customers with ad hoc purchase orders, on account of CosmoSteel's large inventory holdings.