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Singapore’s Big Loser of the Week: Asian Micro Holdings Limited

Credit: hobvias sudoneighm

Shares of Asian Micro Holdings Limited (SGX: 585) plummeted 27% since last Friday to end this week at S$0.011. With the Straits Times Index (SGX: ^STI) declining by “just” 0.5% during the same time frame, it makes Asian Micro a big loser in the market this week.

Established in 1996, the firm provides “contract engineering assemblies and other support services to the high technology industries like hard disk drives, recording heads, semiconductor and other computer related industries.” It also recycles media casettes and foam packaging boxes to help reduce costs for customers.

Asian Micro had released its financial results for the fiscal year ended 30 June 2015 (FY2015) on Thursday.

Revenue in FY2015 declined 8% year-on-year to S$6 million. The poor top-line was mainly due to the cessation of a tray washing business by its subsidiary in Thailand. This was slightly offset by higher revenue generated in its natural gas vehicle business.

Moving down the income statement, a 45% decline in administrative expenses helped Asian Micro return to the black in FY2015 with a profit of S$609,000. This is a reversal from the loss of S$0.6 million that was seen in FY2014.

On the cash flow front, Asian Micro saw net cash generated from operating activities come in at around S$0.4 million. With S$198,000 spent on capital expenditures, the free cash flow figure stood at S$159,000. This is also a reversal from a negative free cash flow of S$0.38 million seen a year back. Asian Micro’s management said that moving on, the company “will continue to focus on restructuring and consolidating its existing business, without any major capital expenditures.”

Asian Micro is now trading at 11 times its trailing twelve-month earnings.

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.