Powermatic Data Systems (BCY) H1 2024 earnings summary

Executive summary

• H1 revenue declined 4% YoY, while gross profit rose 18% and net profit increased 26%, supported by higher margins and lower inventory impairment charges.

• Profit before tax was S$8.400m; basic and diluted EPS both rose to 20.40 cents from 16.25 cents.

Financial highlights

• Revenue was S$17.647m versus S$18.332m; gross profit increased to S$9.325m from S$7.879m.

• Profit before tax rose 22% to S$8.400m; net profit after tax increased 26% to S$7.132m.

• Other gains declined to S$0.865m from S$1.005m; higher interest income partly offset lower foreign-exchange gains.

• Marketing, distribution and administration expenses fell 2.3% YoY, reflecting lower staff costs, revised incentive provisions and organizational streamlining.

Outlook and guidance

• Service income from sourcing components is expected to fall significantly as key component shortages have eased and components become readily available.

• Order conversion to revenue depends on customers not deferring or cancelling orders; customer order reviews remain a source of uncertainty.