Falling Knife of the Week: Pan Asian Holdings

Pan Asian Holdings (SGX: 5EW) has fallen by 10.8% during the week, closing at S$0.033 on Thursday. It thus steals the spotlight as this week’s Falling Knife.

Pan Asian Holdings Limited is a provider of high quality piping system solutions, primarily for the water purification and wastewater treatment industry in the Asia Pacific region. The firm operates in four business segments, namely portable water, wastewater, Newater and others.

At the end of February this year, the firm announced its full year results. Revenue dipped 6% year-on-year to S$47.6 million and it reported a net loss of S$2.4 million. In the previous year, it had made a profit of S$129,000. The revenue decline was due mainly to lower sales in Vietnam, Malaysia, Cambodia and Australia. The loss was largely due to lower revenue and higher marketing and distribution costs. Those costs had increased by 7.5% to $5.9 million as Pan Asian Holdings incurred set-up costs for new companies and had higher wages to pay following increased hiring in its existing businesses.

On 14 April 2014, Pan Asian Holdings informed the public and its investors about details relating to its upcoming Annual General Meeting (AGM) for 2013. The AGM will be held at 2 Tractor Road, Singapore 627966 on 30 April 2014 at 2.30pm. There are a total of seven resolutions to be passed. AGMs provide an opportune time for shareholders to meet management and ask them questions. Shareholders may also want to ask about how the company is going to reverse the losses seen in the latest financial year.

The firm is currently trading at a price-to-book ratio of 0.3.

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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.