As we head deeper into the earnings season, here are summaries of the earnings from another three companies.
Sembcorp Industries Ltd (SGX: U96)
Sembcorp Industries Ltd, or SCI, is a leading energy and urban solutions provider with a balanced energy portfolio of over 12,800 megawatts (MW).
Of this amount, the group has around 3,300 MW of renewable energy capacity including solar, wind and energy storage globally.
For its fiscal 2021 first half (1H2021), the utility giant reported a 26% year on year jump in revenue to S$3.3 billion.
Gross profit jumped by 50% year on year to S$530 million as gross margin expanded from 13.5% to 16%.
Net profit clocked in at S$54 million, a reversal from the S$35 million loss incurred a year ago.
1H2021 was, however, impacted by an impairment of S$212 million on a coal-fired power plant in China.
Excluding this charge, net profit would have risen by 69% year on year to S$252 million.
Meanwhile, SCI’s operating cash flow more than doubled year on year from S$206 million to S$480 million, while free cash flow soared more than five-fold from S$58 million to S$330 million.
The group declared an interim dividend of S$0.02 per share, an improvement from a year before when the interim dividend was suspended in light of the pandemic.
SCI is advancing on its goal of growing its profit contribution from renewables to 70% by 2025.
As of 1H2021, 31% of net profit came from sustainable solutions.
AEM Holdings Ltd (SGX: AWX)
AEM provides comprehensive semiconductor and electronic test solutions and has manufacturing plants located in Singapore, Malaysia, China and Finland.
Revenue fell by close to 30% year on year for the group in 1H2021 to S$192.2 million.
Operating profit plummeted by 45.4% year on year to S$36.5 million while net profit fell by 46.6% year on year to S$29.5 million.
Operating cash flow for the half-year turned negative, registering an outflow of S$13.5 million versus an inflow of S$47.3 million in the same period last year.
An interim dividend of S$0.026 was declared, down from the S$0.05 declared a year ago.
The group remains confident of a stronger second-half and has guided for revenue of S$460 million to S$520 million despite 1H2021’s revenue being less than half of the lower end of the range.
AEM’s next-generation handlers are on track to ramp up at customer sites in the third quarter of this year and into 2022.
The group is also poised to ramp up the volume further with 10 out of the top 20 semiconductor companies.
AEM had also concluded the acquisition of CEI and a partnership with Ateco in the last 12 months, positioning it to offer a full suite of test solutions with enhanced delivery capabilities.
The group called for a trading halt yesterday and announced that it had raised S$103.1 million by placing out 26.8 million shares at S$3.8477 apiece to Temasek Holdings.
This money is to be used for investing in next-generation testing capabilities, research and development, as well as potential acquisition opportunities.
Riverstone Holdings Limited (SGX: AP4)
Riverstone is a manufacturer of nitrile and natural rubber gloves for the cleanroom and healthcare industries.
As of 31 December 2020, the group has a production capacity of 10.5 billion gloves per annum.
Riverstone employs 4,000 staff and has six manufacturing facilities located in Malaysia, Thailand and China.
For 1H2021, revenue for the group surged by 222.2% year on year to RM 2 billion, driven by a surge in demand for both cleanroom and healthcare gloves because of the pandemic.
Gross profit jumped seven-fold from RM 197.7 million to RM 1.4 billion, while net profit increased by 656% year on year to RM 1 billion.
In line with the stellar numbers and a show of confidence in the group’s prospects, management has declared an interim dividend of RM 0.10, a 250% jump from the RM 0.04 declared a year ago.
CEO Wong Teek Son remarked that Riverstone is not resting on its laurels, but is pursuing opportunities to venture into untapped markets such as food processing, pharmaceutical and surgical gloves to grow its business further.
For the cleanroom segment, the group recently acquired an industrial land bank to build a new cleanroom glove processing facility that will increase processing capabilities from the current two billion to 2.5 billion gloves per annum.
Meanwhile, Phase 7 of the group’s expansion plans should be completed by the end of this year, lifting production capacity by another 1.5 billion pieces to 12 billion pieces per annum.
By the end of 2023, the glove manufacturer targets to increase capacity to 15 billion pieces per annum.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.