Singapore - 31 March
2003 - Newly-listed
Sinwa KS Limited
("Sinwa KS"), a regional
marine supply and
logistics provider who
launched its IPO in
February this year,
today reported a
sterling 90.5% growth in
net profit to $4.0
million for the year
ended 31 December 2002.
This was achieved on the
back of a 17.3% increase
in turnover to
approximately $42
million. Gross profit
margins rose from 24.5%
in FY2001 to 28.3% in
FY2002, due mainly to
the higher contribution
of its Projects
business, as well as
Sinwa's ability to
maintain their average
gross profit margins of
24% in its core Supply
business.
Based on the Group's
latest proforma
full-year results,
earnings per share on a
fully diluted basis
increased to 3.22
Singapore cents from
1.69 cents previously,
while net tangible asset
backing per share rose
to 5.41 cents from 5.37
cents.
"This performance is in
line with our
expectations for the
Group at its current
phase of growth. We are
very encouraged by the
strong performance of
our Projects business
which benefited from the
increase in thermal
insulation projects and
the strong margins this
segment is generating,"
said Mr Mike Sim,
Managing Director of
Sinwa KS.
"We have also seen
healthy growth from our
core Supply business as
Singapore marine traffic
continues to flourish,
even as our appointed
marine supply and
logistics companies in
Dalian, Guangzhou and
Shanghai begin to
contribute towards our
growth," he added.
Sinwa KS, which was
listed on SGX-SESDAQ on
28 February 2003, is
proposing a first and
final net dividend of
one cent per share,
which if approved, will
be paid to shareholders
on 18 June 2003.
"Although this dividend
comes from our FY2002's
earnings, which was
generated prior to our
listing in the first
quarter of FY2003, our
Directors have
nonetheless decided to
pay the dividend to our
shareholders, to
demonstrate our
commitment in rewarding
our shareholders for
their support in Sinwa
KS' growth in the global
marine supply and
logistics industry," Mr
Sim explained.
During the period under
review, sales from the
Supply business
increased by 11.3% to
$38.4 million due mainly
to the supply of initial
stores to 16 new vessels
compared to 11 vessels
the previous year; sales
contributed by its
appointed marine supply
and logistics companies
in Dalian and Guangzhou
in the PRC, as well as
an increase of vessels
serviced from 2,970 in
FY2001 to 3,371 in
FY2002.
The Group's Projects
business increased by
157.4% to $2.3 million
buoyed by the completion
of four thermal
insulation projects,
compared to only one
completed in FY2001.
Contributing 5.4% of
Group turnover, Projects
is also the most
profitable business
segment, with gross
profit margins improving
from 38% in FY2001 to
56.1% in FY2002.
Meanwhile, sales from
the Group's Agency
business rose by 222.2%
to $1.3 million due to
services rendered to a
new vessel as well as
two vessels that
dry-docked in Singapore.
In terms of geographical
contribution, the
Group's customers from
Europe who are mainly
ship owners, ship
management companies and
oil rig operators, were
the highest contributors
to its sales, accounting
for 76.8% of total
revenue, while those
from Asia accounted for
11.2%, and those from
Other Countries,
accounted for 12% of
total Group revenue.
Amidst industry
restructuring and
intense competition, the
Group continues to focus
on increasing its market
share of the marine
supply and logistics
business in Singapore
and overseas as it
strives to achieve its
long-term goal of
becoming a global
service provider with
presence in major ports
around the world.
On prospects for the
current year, Mr Sim
said, "The conflict in
Iraq has virtually
little adverse effect on
our Singapore
operations. On the
contrary, a prolonged
conflict may see more
vessels being diverted
to Singapore for
dry-docking and
maintenance, which will
result in additional
opportunities for Sinwa
KS. If this happens, the
increased revenue will
more than make up for
any potential shortfall
by our UAE operations
caused by the conflict."
"We are confident of
further and steady
growth in our operations
in China as more Greek
and other European ship
owners continue to take
advantage of China's
competitive repair and
dry-docking facilities.
Increased cargo
operations in the
Yangtze and the Pearl
River Delta areas will
also contribute to our
growth in China."
"Barring any unforeseen
development, the Group
is confident of
improving on its FY2002
performance," Mr Sim
added.
About Sinwa KS
Limited
With a history that
dates back to the 1960s,
Sinwa KS, a winner of
EDB/Business Time's
Enterprise 50 Awards in
1998, is today an
established ISO
9001:2000-certified
marine supply and
logistics company
servicing the oil and
gas industry and
sea-going vessels in
Singapore, UAE, the PRC
and Timor Leste.
Sinwa KS's core business
is supplying a wide
range of ships' stores,
provisions and equipment
to ships and oil rigs,
as well as providing
their operators and
owners with shipping
agency and related
services.
Since 1999, the Group
has also expanded its
capabilities to include
the supply, fabrication
and installation of
thermal insulation
materials on gas and
chemical vessels. This,
together with its marine
supply management,
consultancy and contract
labour supply to oil
rigs, has helped the
Group to further
diversify its business
and geographical reach.
The Group's acquisition
of KS Seafirst, a
wholly-owned subsidiary
of Mainboard-listed KS
Tech Limited, in 2002,
has enabled the Group to
access and increase its
reach in the oil and gas
industry. Through KS
Seafirst's
representative office in
Timor Leste, Sinwa KS
also provides contract
labour to the oil and
gas industry there.
