Singapore “Flyer” of the Week: Broadway Industrial Group Limited

A manufacturer of precision-machined components and provider of engineered foam solutions, Broadway Industrial Group (SGX: B69) has soared 11.5% so far for the week to finish off at $0.29 on Thursday.

Broadway was founded in 1969 and it boasts over 14 manufacturing and research facilities across China, Thailand and the USA. It has two business divisions: foam plastics, and precision components. Under the former business division, it is a leading provider of eco-friendly foam solutions for packaging, insulation, automotive, medical and other applications, with a track record spanning more than 40 years.

The firm is also one of the top three manufacturers of actuator arms and related assembled parts for the global hard disk drive (HDD) industry. Broadway counts the “big boys” such as Western Digital and Seagate as its major clients.

Broadway’s latest fourth quarter results for 2013 was released on 28 Feb 2014. Revenue came in at S$644.7 million, a year-on-year rise of 4.7% due to increased sales from the foam plastics division and non-HDD segments in the components division. However, net profit plunged 93.3% to S$1.6 million. In the previous year, net profit was at S$24.5 million. The huge decrease in net profit for the latest financial year was due to the absence of one-off gains – fair value gains on financial derivatives and proceeds from insurance claims due to the Thailand flooding that affected itsThailand plants – that arose in the previous year.

On 6 April 2014, the firm released the Notice of Annual General Meeting (AGM) through Singapore Exchange. The AGM will be held on 23 April 2014 at 9.30 a.m. at Seminar Room 6-7, Level 5, Symbiosis, 3 Fusionopolis Way, Singapore 138633.

Shareholders of Broadway will have a unique chance to talk to the company’s management and find out where the company will be headed in the near future. Investors usually can glean more information from the company they are vested in through AGMs than through reading annual reports alone.

Broadway is currently trading at a historical PE ratio of close to 70.

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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.