Factory Sale Lifts Qian Hu’s 4Q11 Bottom Line
Qian Hu Corporation (Qian Hu), an ornamental fish service provider, registered its 4Q11 net profit of $886,000, 40% higher than a year ago, largely aided by gains in the sale of its Guangzhou factory. The sale of the Guangzhou factory by Qian Hu’s subsidiary reaped about $952,000 in gains due to its negative net assets position. However, the firm posted a dismal top line showing for the quarter as revenue dipped 13% to $19.32 million. Scrapping away the one-time gain on disposal, Qian Hu’s earnings for 4Q11 would have been in the red by some $66,000. Executive chairman, Kenny Yap, said that the fall was due mainly to weakening purchasing sentiments from its European export markets as well as the Thai floods which disrupted its operations. For the entirety of FY11, Qian Hu’s net profit dropped by 17.7% to approximately $3.5 million as revenue registered a 3.1% decline to $88.3 million.
Significance: Qian Hu has proposed dividends of $0.006 per share despite a lower FY11 net profit. This translates to approximately 6.6% dividend yield. Amidst a gloomy global economic outlook, the firm remarked that it will seek to diversify its revenue streams and thus expect to remain profitable in FY12.
China Titanium Experiences Major Shakeup In Its Board
The independent directors (IDs) of China Titanium have stepped down in an announcement made late in the night of 11 January. Nominating and corporate governance committee chairman Ng Kim Tean, remuneration committee chairman Tao Yeoh Chi and audit committee chairman Teh Wing Kwan, suggested in statements released, that the lack of experience in China Titanium’s senior management had required them to be too involved in the firm, thus jeopardizing their independence. In a separate filing, the company had reported a loss of Rmb6.55 million in its 4Q11 compared to a year-ago profit of Rmb8.18 million.
Significance: The shakeup in China Titanium’s board comes at a time when the company is seeking to change its business and could potentially scuttle such attempts. The bad press also adds on to a recent slate of ‘inconveniences’ experienced by other S-Chips and throws into question the stability of such counters.
Ascott Lands New Management Contract in Surabaya
CapitaLand’s serviced residence business unit, The Ascott (Ascott), has secured a new management contract for its first Citadines aparthotel in Surabaya, Indonesia. The 288-unit Citadines Marvell Surabaya, located in the business district of Ngagel is scheduled to open in 2014 and will be part of an integrated development city called Marvell City. The 12-storey Citadines Marvell Surabaya will be close to the Surabaya Industrial Area Rungkut and have studios, one- and two-bedroom apartments, and amenities such as a residents’ lounge and a swimming pool. Alfred Ong, Ascott’s managing director said that with the new contract, the firm would be able to “tap the growing segment of savvy, independent travellers who want the flexibility to choose the services they desire to create their unique stay experience”.
Significance: Ascott is slated to open four more properties in Indonesia by 2014 which include two Citadines in Bali and Jakarta by the end of 2012. It feels that Indonesia’s resilient economy and increasing foreign direct investment would provide the firm with “tremendous opportunities to expand”.