Singapore’s Big Loser for the Week: Chew’s Group Ltd

Egg farmer Chew’s Group Ltd (SGX: 5SY) fell 5.3% this week to end Thursday at S$0.27.

As the broader market, represented by the Straits Times Index (SGX: ^STI), moved in the opposite direction, Chew’s Group is one of the big losers in the local market this week.

The firm is a leading producer of fresh eggs in our country, “specialising in the production and sale of Designer Eggs under the “Chew’s” brand name,” according to its website.

On 28 January 2015, the company conducted its Annual General Meeting (AGM) for the financial year ended September 2014 (FY2014). Chew’s said that all the resolutions that were set out in the Notice for the AGM were duly passed by the shareholders of the firm.

For FY2014, revenue came in at S$31.2 million, an improvement of 10% year-on-year. This was mainly due to higher sales of designer and generic eggs produced. However, net profit dipped 18% to S$1.8 million on the back of higher employee costs, higher amount forked out to purchase materials, and amortisation of biological assets.

Even though net profit declined, the egg farmer experienced growth in cash flow; net cash flow from operations went up from S$17.5 million a year ago to S$22.8 million.

The egg producer declared a final dividend of 0.44 Singapore cents per share, a fall of some 17% from last year’s 0.53 Singapore cents. It now yields 1.6% and is going at 11.4 times its latest earnings.

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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.