Environmental engineering company, Sanli Environmental 1E3 , has reported earnings of $2.92 million for its FY2024 ended March, down 32.8% y-o-y.
Meanwhile, earnings per share for the year came in at 1.09 cents, 33.1% lower y-o-y.
Conversely, Sanli’s revenue for the FY2024 increased by 22.7% to $130.6 million from the previous year’s $106.4 million, driven by the 22.7% y-o-y revenue growth to $108.1 million in its engineering, procurement and construction (EPC) segment due to the completion of new projects initiated in the previous year.
Revenue in the company’s operations and maintenance (O&M) segment similarly grew by 22.5% y-o-y to $22.4 million, thanks to the completion of more O&M orders in FY2024.
While Sanli’s gross profit improved 14% y-o-y to $16.2 million, its gross profit margin decreased from 13.4% in the year before to 12.4% in the FY2024.
The company’s lower earnings were mainly from higher administration expenses, which rose by 18.0% y-o-y to $9.2 million in due to higher staff related costs, property tax and legal and professional fees for the company’s new business diversifications, as well as short-term office rental expenses incurred during the period.
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For the period, the company has recommended a first and final dividend of 0.327 Singapore cents per share.
As at March 31, Sanli has a net asset value of $32.0 million, which translates into a net asset value per share of 12.00 Singapore cents, compared to the previous 11.68 Singapore cents as at March 31, 2023.
“We will continue to build up our project pipeline, while bolstering it with new recurring income streams that are being developed. With ongoing geopolitical tensions and a dynamic and uncertain global economic outlook, we will continue to remain vigilant in terms of managing our costs and cash flow while mitigating business risks as we pursue opportunities that leverage our strong engineering expertise and track record,” says Sim Hock Heng, CEO.
Shares in Sanli Environmental closed 0.2 cents higher or 1.786% up at 11.4 cents on May 24.
