MENU

What Does Pan-United Corporation Ltd Do and How Does It Make Money?

It is important to know what a particular company does and how it makes money before investing in it. Investing in a business without such a knowledge is akin to travelling to an unknown territory without a map.

On that note, let’s check out what business Pan-United Corporation Ltd (SGX: P52) is involved in and how it generates its revenue.

Pan-United, as a quick background, is a multinational corporation established more than 50 years ago and is mainly focused on supplying ready-mixed concrete (RMC) and cement and operating ports in China.

Let’s take a look at the table below for the revenue contribution from each segment for the financial year ended 31 December 2016 (FY2016):

Source: Pan-United Corporation Ltd Annual Report 2016

Revenue from the concrete and cement segment comes from the company supplying cement, granite, RMC and refined petroleum products to the construction and marine industries in Singapore and Vietnam. This segment brought in 82% of the total revenue in FY2016.

Pan-United is the largest supplier of RMC and cement in Singapore and is one of the top two RMC suppliers in Asia ex-China.

Some of the key projects undertaken in our country last year include container berths and stacking yards at Pasir Panjang Terminal (Phase 3), Jewel Changi Aiport and new shipyard at Tuas South (Phases 1 and 2).

Meanwhile, the ports segment, which contributed to 13% of total revenue in the last financial year, operates two adjacent ports in the People’s Republic of China and provides port related services. The two ports – Changshu Xinghua Port and Changshu Changjiang International Port – are collectively known as Xinghua Port Group.

Last but not the least, revenue from its bulk shipping and agency operations, and companies which are of investment holding nature make up the others segment.

Behind every ticker symbol lies a living, breathing business. Buying a stock without fundamental knowledge of what the company does and how it makes money can be dangerous.

Now that we know the basics of Pan-United Corporation Ltd’s revenue streams, we can then delve into other aspects of the firm such as its profitability, strength of its balance sheet, its cash generating abilities, and more.

For more (free!) stock analyses and investing tips, sign up here for your FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.

Like us on Facebook to follow our latest hot articles.

The Motley Fool's purpose is to help the world invest, better.

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.