Lian Beng Group
Fourth-quarter net profit at Lian Beng Group slumped 43.9 per cent to $30.4 million on the back of a 55.8 per cent drop in revenue to $78.3 million for the period.
For the full year to May 31, net profit fell 4.7 per cent to $102.9 million while revenue fell 40.4 per cent to $445.4 million.
Revenue from the construction and ready-mixed concrete segments fell, due to the slowdown in private sector construction activities, the company noted.
Earnings per share for the fourth quarter was 6.08 cents, from 10.62 cents a year earlier. Earnings per share for the full year was 20.41 cents, compared with 20.85 cents previously.
Net asset value was $1.09 at May 31, compared with 91 cents a year earlier.
A total dividend of three cents was reported for the period, similar to a year earlier.
The group is "cautiously optimistic of the outlook for the construction industry in the next 12 months" as it is expected to be challenging, but the group's investment in high yield bonds and investment properties will generate stable interest and rental incomes, it said.
The counter closed up 1.5 cents to 49 cents yesterday.
Yeo Hiap Seng
Second-quarter net profit at Yeo Hiap Seng surged 102.7 per cent to $8.1 million, mainly due to higher net profit generated from the food and beverage division. This was even though revenue for the three months to June 30 dipped 3.5 per cent to $112.8 million.
Net profit was higher due to lower advertising and promotion expenses, as the company focused on higher impact advertising campaigns and was more efficient in promotion spending.
It also notched up lower selling and distribution expenses due to lower sales and had lower administrative expenses, thanks to lower staff costs and professional fees.
Earnings per share was 1.41 cents for the three months, compared to 0.7 cent a year earlier. Net asset value was $1.0314 at June 30, compared with $1.0388 at Dec 31.
The company said it expects food and beverage margins to come under pressure over the next 12 months, due to soft economic conditions and weak outlook for its key markets, competitive selling prices, and uncertainty in raw material prices; but its performance should remain satisfactory.
The counter closed one cent lower at $1.405 yesterday.