Chasen Holdings reported a surge in its profit after tax (PAT) for 1HFY2025 to $26.8 million, an increase from $816,000 in 1HFY2024. Chasen’s 1HFY2024 ends on Sept 30.
According to the company, this was boosted by the $37.2 million gain from the divestment of the City Zone Group, offset by the impairment of goodwill.
Chasen’s earnings for continuing operations attributable to equity holders of the company stood at $27.2 million, reversing from a loss of $1.59 million in the corresponding period the year before.
Conversely, earnings of discontinued operations attributable to equity holders of the company fell from $2.03 million in 1HFY2024 to $276,000 in 1HFY2025, representing an 86% decline y-o-y.
Earnings per share for 1HFY2025 was 7.11 cents, compared to 0.11 cents in 1HFY2024.
Net asset value per share also grew to 22.8 cents as of 30 Sept 2024, as compared to 15.1 cents as of 31 March 2023.
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Chasen’s revenue in 1HFY2025 grew 24% y-o-y to $54 million while gross profit increased by 36% y-o-y to $11.4 million during the same period. The growth in revenue and gross profit were largely attributable to Chasen’s specialist relocation segment. Under the segment, Chasen’s US subsidiary played a key role by securing a multi-million dollar contract for relocating a lithium-ion electric vehicle (EV) battery manufacturing facility in Kansas as announced in May this year.
Furthermore, the technical and engineering (T&E) segment saw mild improvements attributed to the solar panel installation and scaffolding units, despite increasing competition, which is expected to intensify.
Alongside Chasen’s divestment of the components and parts manufacturing unit in China, the performance of this segment is expected to improve.
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Gross profit margins grew by 1.9 percentage points (ppt) to 21.1 in 1HFY2025.
In line with the completion of the disposal of the City Zone Group, Chasen has declared a special dividend of 3 cents per ordinary share tax-exempt (tier 1) for FY2025, ending March 31, payable on Dec 18.
Looking ahead, Chasen notes that the global economic environment continues to face challenges, characterised by slow growth, geopolitical tensions and inflationary pressures.
The broader economic outlook remains uncertain, facing challenges such as supply chain disruptions and fluctuating energy markets.
Chasen states that the group’s performance in the third-party logistics (3PL) is likely to face reduced customer demand due to supply chain challenges.
Chasen has announced that it has signed a sales and purchase agreement (SPA) to divest 90% of its stake in Suzhou Promax Communication Technology (PMXC), a subsidiary held through its 55%-owned REI Promax Technologies.
Low Weng Fatt, Chasen’s managing director and CEO, notes: “In an increasingly complex economic environment, we remain focused on effectively managing risks and disruptions. “Our ability to stay agile in seizing growth opportunities will be key to building long-term value for our shareholders.”
As at 2.14pm, units in Chasen are trading 0.1 cents lower or 0.9% down at 11 cents.
