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Singapore’s Big Loser for the Week: Noel Gifts International Ltd

Noel Gifts International Ltd (SGX: 543), which sells flowers and gifts for various occasions, has lost 17.2% since last Friday to close at S$0.255 on Thursday. During the same time period, the Straits Times Index (SGX: ^STI) added 0.5%. This discrepancy makes Noel Gifts one of the biggest losers in Singapore for the week.

On 3 November 2014, the company went ex-dividend. It will be paying out 1.5 Singapore cents for the fourth quarter, to shareholders who qualify, on the 17th of this month.

For the financial year ended 30 June 2014 (FY2014), Noel Gifts brought in revenue of S$27.6 million, which is a drop of 1.8% year-on-year. Its profit plunged 68% to S$1.6 million, mainly due to the absence of fair value gains from its investment properties of S$3.4 million that was seen a year ago.

The firm had a cash balance of S$10.8 million with no debt, as of 30 June 2014. This is an improvement from a cash hoard of S$8.1 million seen exactly a year ago.

Even though its net profit declined drastically, operating cash flow actually improved from S$1.5 million last year to S$3.2 million in the latest period. This was mainly due to the fact that the fair value gain mentioned above was a non-cash item.

To end off, the firm added that it was awarded a contract from the National Population & Talent Division, Prime Minister’s Office, for the supply, design, and distribution of gifts, as announced at the end of June this year. It also “expects the next 6 months to be better than 1H FY2014. In addition the Group expects the next 12 months to be profitable.”

Noel Gift is trading at 17 times its historical earnings and sports a dividend yield of 1.2%.

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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.