Newly-listed engineering firm Ever Glory United Holdings has reported a maiden set of earnings that's 771% higher y-o-y. In addition, it is declaring an interim dividend. And, it is proposing a bonus share issue.
On Aug 10, the company, which went IPO in May at 22 cents each, reported earnings of $5.49 million for its 1HFY2023 ended June, vs just $0.63 million reported for 1HFY2022.
Revenue in the same period more than doubled to $26.6 million, from $10.1 million, as the company recognised more revenue from ongoing projects.
Typically, newly listed companies, in their maiden results, will announce a big hit as they got to book recently incurred expenses.
In the case of Ever Glory United, its maiden results reported for 1HFY2023 included $1.21 million in one-off IPO costs.
The company's two largest shareholders, at 38.72% each, are executive director and CEO Xu Ruibing, and non-independent, non-executive chairman, Sun Renwang.
As described in the company's IPO prospectus, Xu Ruibing started his career in 1993 as an engineer in the PRC before relocating to Singapore in 1995.
Sun, according to the company's IPO prospectus, worked in China's farming industry for 6 years before relocating to Singapore in 1995. He first worked as a project supervisor at a construction company before setting up his own businesses in 2000 and venturing into property development and investments.
The company plans to pay an interim dividend of 1.5 cents each.
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In addition, it is proposing a 1-for-1 bonus share issue. This will double its share base to 169.4 million shares.
In its separate announcement, Ever Glory United says that bonus share issue is to "reflect the growth and expansion of its business and to reward and give due recognition to shareholders for their loyalty and continuing support for the company."
The proposed bonus Issue, if carried out, will also increase the accessibility of investing in the company to more investors, thereby encouraging trading liquidity and greater participation by investors and broadening the shareholder base of the company."
In its earnings commentary, Ever Glory United says that even though the construction demand in Singapore appears to be stable, the group remains cautious and expects to face challenges from other competitors, costlier manpower and materials.
The group will continue to monitor the costs during the execution of existing projects and try and increase its orderbook.
"Going forward, the group will explore new business opportunities to acquire new businesses or make new investments to enhance shareholders’ returns," says Ever Glory United.
Ever Glory United closed at 60 cents on Aug 11, up 173% from its IPO price.
