Yongmao Holdings' Q1 profit more than doubles to $7.3 million

SINGAPORE - CHINA-BASED Yongmao Holdings' first-quarter net profit climbed to 36.2 million yuan (S$7.3 million) from 13.1 million yuan previously.

This was despite revenue for the three months to June 30 falling 11.2 per cent to 229.5 million yuan. The fall was mainly due to a decrease in sales in China by 31.7 per cent as a result of weaker domestic demand, despite stronger demand in Europe, the Middle East and the rest of Asia.

Gross profit margin improved to 31.6 per cent from 23.8 per cent in the same period last year. Earnings per share soared to 8.15 fen from 2.95 fen while net asset value per share firmed to 127.35 fen compared to 119.56 fen as at Dec 31.

Yongmao said China's economic slowdown will likely hit domestic demand for construction equipment including tower cranes.

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