Asia Enterprises Holding (A55) H1 2024 earnings summary

Executive summary

• 1H24 revenue fell 65% YoY to $21.819m amid lower sales volumes, intense competition and softer steel selling prices; net profit was $0.301m vs $2.791m.

• Gross margin improved to 15.9% from 13.9%, while cash and cash equivalents rose to $44.455m; borrowings were zero.

Financial highlights

• Revenue was $21.819m, down 65% YoY; gross profit declined 60% to $3.466m.

• Profit before tax fell 86% to $0.510m; net profit was $0.301m vs $2.791m, down 89%.

• Other income and gains were $1.013m vs $1.102m; marketing and distribution costs fell 77% to $0.169m and administrative expenses fell 33% to $3.573m.

• Basic and diluted EPS were both 0.09 cents, vs 0.82 cents in 1H23.

Outlook and guidance

• A cautious business view was planned for 2H24, alongside continued business development, marketing, customer relationship building and sufficient inventory to serve project needs.

• Priorities include vigilant sales and credit management, tight expense controls and prudent inventory management to preserve financial resilience through business cycles.