Yongmao Holdings makes big strides in profit, revenue

SINGAPORE - Towercrane maker Yongmao Holdings said its fourth quarter net profit nearly doubled to 11 million yuan from 5.7 million yuan in the same period last year.

Revenue for the three months to March 31 rose by 68.8 per cent to 220.5 million yuan.

Full year net profit grew by 130.4 per cent to 51.3 million on the back of a 35.2 per cent increase in revenue to 909.6 million yuan.

This was mainly attributable to an increase in revenue across all of the group's geographical segments.

China continues to be the Yongmao's largest market, accounting for 65.5 per cent of total revenue, down marginally from 66.4 per cent last year.

Sales in China grew by about a third to 596 million yuan despite a slowdown in the Chinese economy and in the property sector.

Sales in the Middle East, and USA & Europe grew by 207.1 per cent and 133.8 per cent, respectively, largely as a result of higher sales in Israel/UAE and Russia.

This is mainly attributable to improving market sentiment of construction activities in these regions.

Sales in Asia, excluding China, grew by 17 to 226.4 million yuan, largely due to higher sales in Hong Kong/Macau and Malaysia.

Gross profit margin increased 1.9 percentage points to 27.3 per cent, mainly due to stronger sales of higher-margin luffing series towercranes in Asia.

Full year earnings per share swelled to 11.56 fen from 5.02 fen previously while net asset value per share grew by 10.12 fen to 119.56 fen.

A final dividend of half a cent was proposed, up from 0.25 cent last year.