Time to strike as Asia Enterprises bounces back from steel slump?

SINGAPORE (July 11): In FY2015, Asia Enterprises incurred a loss of $12.1 million, owing mainly to an inventory write-down of $9.8 million as steel prices declined. Revenue also slipped 50% y-o-y to $32.3 million during the year, weighed down by a contraction in sales volume and lower average selling prices of its products.

“Last year was, in fact, the only year in our life that we made a loss,” says Yvonne Lee Yih Chyi, managing director of Asia Enterprises. “That was the one single painful year.”

The group has certainly come a long way since. For 1QFY2016 ended March, the group posted earnings of $746,000, rebounding from a loss of $593,000 in 1QFY2015. As at end-March 2016, the group had shareholders’ equity of $93.4 million and no borrowings. In fact, its net cash position of $67.9 million is more than its entire market capitalisation of about $58.5 million.

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