Advanced Holdings was started in 1993 to carve a niche business by combining its
engineering expertise in the supply of process technologies and equipment.
Today, mainboard-listed Advanced is an ISO 9901:2000 certified specialist company which designs, licenses and supplies proprietary process equipment and process technologies for its customers in the chemical and petrochemical, oil and gas, power generation and microelectronics industries.
Advanced Holdings Ltd reported more than 3-fold jump in turnover – from S$5.0 million to S$22.9 million for the first quarter of its financial year ended 31 March 2008 (“1QFY08”). Its net profit increased to S$2.1 million for 1QFY08.
The Group’s improved performance stems from enhanced contributions in established
markets such as China, as well as from growing markets in Other Asian Countries.
Contribution in revenue from the Group’s acquisition of Guided Wave Inc (“GWI”) in May 2007 is approximately S$2.1million.
The Group’s gross profit margins went up by 6.1% from 17.3% for 1QFY07 to 23.4% for
1QFY08. The improved margin was achieved mainly through execution of projects with
overall better margins during the period and enhanced margins contribution from GWI.
Its net profit margins also improved to 9.0%.
With the improved financial results, Advanced achieved an earnings per share of 0.66 cents and net asset value per share of 22.15 cents in 1QFY08.
The Group continues to seek growth opportunities in our business and leverage on our
technical and engineering expertise to strengthen our foothold in the markets where the Group has presence in.
The Group continues to target and ride on the strong and continued growth in the Oil & Gas and Petrochemicals & Chemicals Industries in our key markets. The Group has also intensified its efforts and activities in the Clean Energy Division and the Environmental Solutions Division.
It is also within the Group’s plans to incorporate new offices in China, Europe, Middle East and other parts in the Asia Pacific region to expand and strengthen its geographical reach and markets presence within the next 12-24 months.
As at 31 March 2008, the outstanding orders for the Group were approximately $63.0 million. The Group’s order books may not be indicative of its revenue for any successive periods.
Advanced Holdings has the capability to win reasonable size contract, and has the ability to deliver the contract without sacrificing its margins. Historical PE is trading is 6.44X, this stock is dirt cheap, and market has basically ignored OR underestimated the superiority of this company.
Major shareholders:
Wasatch Advisors
Fidelity Management
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