Serial System sparkles with 29% jump in Q3 net profit

Serial System has posted a 29 per cent rise in third quarter net profit to US$2.9 million (S$3.6 million).

Revenue for the three months to Sept 30 was up 24 per cent to US$222.7 million.

Group turnover in North Asia (comprising Greater China, South Korea, Taiwan and Japan) increased by about 28 per cent, thanks to the growth of major product lines and addition of new customers.

The group's new Japan subsidiary contributed revenue of about US$7.3 million, accounting for a 5 per cent increase in revenue for North Asia.

North Asia accounted for 82 per cent of group turnover, up from 80 per cent in the corresponding period last year.

Turnover in Southeast Asia and India posted an increase of 11 per cent, mainly due to increase in sales to existing and new customers.

Gross profit margin, however, declined from 9.1 per cent to 8.8 per cent, mainly due to lower margins earned from the group's South Korean and Singapore subsidiaries owing to stiff market competition in South Korea and higher sales of lower margin products in Southeast Asia.

Earnings per share climbed to 0.32 US cent from 0.25 US cent previously while net asset value per share firmed to 12.17 US cents compared to 11.71 US cents as at Dec 31.

Looking ahead, Serial System said it is cautiously optimistic that its overall financial performance this year will be better than last year's.

A special interim dividend of 0.25 cent a share was declared.