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Singapore “Flyer” Of The Week: Jason Parquet

JasonParquetLogoJason Parquet Holdings Limited (SGX: 5UU) is our Singapore “Flyer” of the week. How apt that a home-grown company should take the spotlight as Singapore celebrates its National Day this week. The company, which only floated last year, chalked up gains of 15% to S$0.23 in a holiday-shortened trading week.

Jason Parquet is a local timber flooring specialist contractor. According to the company they are “the undisputed market leader in timber flooring works and have completed numerous projects like the prestigious Ardmore Park I / II, Ion @ Orchard, Reflections @ Keppel, Berthside @ Sentosa”.

Earlier this week, the company warned that it “expected to record a net loss for HY2013”. But it went on to say that the expected net loss will be mainly due two reasons.

The first is “lower gross profit in HY2013 due to higher cost of sales, as a result of increase in cost of materials and subcontract costs.

It added that profits would be impacted by “allowance for doubtful trade receivables from Poh Lian Construction (Pte.) Ltd., which was placed under judicial management on 7 March 2013 in respect of work done in the first quarter of 2013”.

The market is usually irrational. Despite a profit warning, the market did not punish the company but rather celebrated the anticipated loss. Mr Market seems to be very euphoric about this company.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.