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What Investors Need To Know About Qian Hu Corporation Limited’s Latest Earnings Release

If you have ever been to a fish farm within Singapore, chances are it is Qian Hu Corporation Limited’s (SGX: 552).

Listed on Singapore’s share market since 2000, Qian Hu is an integrated ornamental fish service provider. The company breeds, imports, exports, and distributes ornamental fish, including its specialty, the Dragon Fish. Besides rearing fish for sale, Qian Hu also peddles a wide range of aquarium and pet accessories.

Qian Hu reported its third quarter results yesterday after the markets closed. With its quarterly revenue dipping slightly by 0.2% year-on-year to S$20.5 million, its net profit had dropped by a more drastic 10.2% to S$79,000.

Qian Hu has three business segments which are named Ornamental Fish, Accessories, and Plastics. Let’s run through the results of each briefly. Revenue from the Accessories segment had improved by a modest 3.3% from S$9.16 million to S$9.46 million. Meanwhile, the other two, Ornamental Fish and Plastics, had seen a 3.3% and 2.6% decline in sales respectively.

Kenny Yap, Qian Hu’s Executive Chairman and Managing Director, had the following comments on the company’s poor third quarter performance:

“The fiscal third quarter is usually a relatively low season for our ornamental fish export business as people in Europe typically take their vacations during the summer months. In China, our customers were reluctant to hold more Dragon Fish inventory because of the severe hot climate this summer.”

Nevertheless, Yap continues to be optimistic about Qian Hu’s prospects. He added that Qian Hu “expects to launch a few more revolutionary products that will woo both Asian and international buyers at the hugely popular China International Pet Show to be held in Beijing in November this year.”

Based on QianHu’s share price of S$0.081 yesterday, the company is trading at a lofty 124 times trailing earnings and sports a historical dividend yield of 1.25%.

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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 James Yeo doesn’t own shares in any companies mentioned.