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Profit before tax of S$3.4M was in line with guidance and corporate update
issued on 17 July 2010.
Financial position remains strong with cash and cash equivalent of S$11.5M as
at 30 June 2010, up sharply from S$2.8M a year ago.
One-tier (tax exempt) interim dividend of 0.5 cent per ordinary share.
The financial performance in the second half of the financial year is traditionally
stronger than the first half. Having achieved a sharp improvement in revenue
and profit in 1H2010, the Group will continue to assess the performance for
2H2010 before providing any update on the outlook in the 4th quarter of
FY2010.
Announcing its best-ever half-year performance since it was listed in October 2007,
homegrown Rokko said its 1H2010 revenue nearly trebled to S$22.2M from S$5.6M in
1H2009, due to strong demand from its major customers for its specialised
semiconductor equipment and connectors used by the electronics manufacturers.
Media Release – Rokko 1H2010 Net Profit After Tax Surges To S$2.9M, Reversing Loss of
S$1.2M In 1H2009; Announces First-Ever Interim Dividend of 0.5 cent
5 August 2010
Page 2 of 3
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The Equipment Division, which contributed 62.2% of the Group’s revenue in 1H2010,
recorded a revenue of S$13.8M, 400% higher as compared to S$2.7M in 1H2009, due
to significantly higher capital expenditure by its semiconductor customers. Revenue
from the Stamping Division, which contributed 25.3% of the Group’s revenue in
1H2010, increased three-fold while that of the Tooling Division grew 73%.
Gross profit soared nearly 400% to S$6.8M in 1H2010 from S$1.4M in 1H2009 and
gross profit margin improved from 24.9% in 1H2009 to 30.7% in 1H2010, due to better
capacity utilisation in both the Stamping and Tooling Divisions.
Rokko recorded net profit before tax of S$3.4M in 1H2010, a stark contrast from a loss
of S$1.2M in 1H2009.
With a net profit after tax of S$2.9M, its earning per share rose to 1.92 cents in
1H2010, from negative 0.82 cents in 1H2009. Net asset value per share increased to
14.7 cents as at 30 June 2010 from 13.3 cents as at 31 December 2009.
To reward shareholders for its strong performance, Rokko declared a one-tier (tax
exempt) interim dividend of 0.5 cent per ordinary share, which is approximately 28% of
its net profit after tax for 1H2010.
Commenting on the outlook of the Group, Rokko’s founder and Managing Director Mr
Gary Lim said that traditionally, its financial performance in second half is stronger
than the first half. Having achieved a sharp improvement in revenue and profit in
1H2010, the Group will assess the performance for the second half of FY2010
(“2H2010”) before providing any updates on the outlook in the 4th quarter of FY2010.
As at 2 July 2010, the Group’s order book stood at approximately S$15.5M compared
to S$10.3M as at 31 December 2009, of which its main revenue driver, the Equipment
Division, accounted for approximately 70%.
The industry forecast and expected rise in capital expenditure among semiconductor
players in Asia will continue to underpin the outlook for Rokko’s FY2010 financial
performance.
“We have delivered a good set of results which underscore the strong recovery in the
semiconductor sector in line with higher consumer spending. Our strategy for success
is to remain focused on delivering quality products and to continue to focus on
research and development (“R&D”) and strong customer service,” Mr Lim said.
Following the placement of 15 million new shares on 26 May 2010 which raised about
S$2.0M in net proceeds, the Group intends to setup its manufacturing plant in the
People’s Republic of China to expand its business and continue to invest in R&D,
which is one of its core competitive edges.
2
Media Release – Rokko 1H2010 Net Profit After Tax Surges To S$2.9M, Reversing Loss of
S$1.2M In 1H2009; Announces First-Ever Interim Dividend of 0.5 cent
5 August 2010
Page 3 of 3
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This announcement has been prepared by the Company and its contents have been
reviewed by the Company's sponsor, PrimePartners Corporate Finance Pte. Ltd. (the
“Sponsor”), for compliance with the relevant rules of the Singapore Exchange Securities
Trading Limited (the “SGX-ST”). The Sponsor has not independently verified the contents
of this announcement.
This announcement has not been examined or approved by the SGX-ST and the SGX-ST
assumes no responsibility for the contents of this announcement, including the
correctness of any of the statements or opinions made or reports contained in this
announcement.
The contact person for the Sponsor is Mr Mark Liew, Managing Director, Corporate
Finance, at 20 Cecil Street #21-02 Equity Plaza, Singapore 049705, telephone (65) 6229
8088
## End of Release ##