Singapore’s Big Loser for the Week

Asian Micro Holdings Limited (SGX: 585) has slumped by 32% since last Friday to close at S$0.015 yesterday. Given that the Straits Times Index (SGX: ^STI) had declined by only 1.4% in the same time, it makes the company a big loser in the Singapore market this week.

According to Asian Micro’s website, it “provides natural gas supply related products and services. The Group’s secondary core business is in recycling and precision cleaning of packaging trays and media/disk cassettes used in the hard disk drive and semiconductor industries in Singapore, China, and Thailand.”

For its fiscal year ended 30 June 2014 (FY2014), Asian Micro saw its revenue drop by 2% year-on-year to S$6.6 million. The decrease in revenue was on the back of lower revenue from its Thailand subsidiary. That was partially offset by higher revenue from its Singapore subsidiary in the natural gas vehicle business.

Even though revenue slumped, the bottom line was better. Asian Micro saw a net loss of S$0.6 million for FY2014, an improvement over the previous year’s loss of S$1 million. The better performance was due to an increase in other operating income.

As of 30 June 2014, the company had total debt of S$164,000 and a cash balance of S$1.3 million. The firm did a private placement during the year, issuing some new shares. The exercise helped to boost the company’s cash hoard from S$0.4 million in the previous year to the quoted figure above.

Going forward, Asian Micro said its business will remain challenging for FY2015 due to pricing pressure from clients and a possible increase in operational costs. However, the firm will continue its cost cutting efforts. In addition, the company would continue its measures to improve its earnings, such as focusing on its profit making subsidiaries and taking actions to cull any loss making business.

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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.