Jason Marine Group is expecting to report a net loss for 1HFY2025 ended September, based on a preliminary review of its unaudited results. 

 

The group says that despite an increase in revenue in 1HFY2025 as compared to the same period last year, the group&rsquo s net performance was weighed down by delays in project deliveries, a decrease in other income and increase in operating costs.

 

The group adds that Jason Marine is currently in the process of finalising its consolidated financial statement and that further details are expected to be disclosed in the release of its results. 

 

FY22 revenue and net profits were S$30.9m (+3%) and S$0.2m (-23%) respectively. The decline in net profit is mainly due to a decrease in government grant of ~S$1.2m and one off termination payment of ~S$0.5m in FY21. Government grant support ceases in FY23.

 

Enquires from customers have picked up post-opening, and more projects are coming back on-stream after a slowdown in the past 2 years. Higher crude prices, shipbuilding orderbook and easing of travel restrictions are tailwinds for the sector. We believe the Group&rsquo s order intake could return to pre-pandemic level. 

 

Like other project engineering companies, the Group faces execution challenges from component/equipment shortages which might delay revenue recognition and risk cost overrun. Nevertheless, these shortages are short-term concerns and likely to ease as chip capacities redistribute following a slowdown in consumer electronics demand. 

 

The Group maintains a sound and healthy balance sheet with a net cash balance of S$14.7m as at Mar 22. (i.e. 14ct/share). The Group has proposed a dividend of 1ct/share (FY21: 0.75c/share) for FY22 which translates to a dividend yield of 6.3%. The share is currently trading below book value at P/B of 0.7x.

 

Between Jun 24 and 28, Jason Marine Group : 5PF 0% non independent non-executive director Eugene Wong Hin Sun acquired 100,000 shares of the company at an average price of 17.4 cents per share. This increased his total interest in the leading marine electronics systems integrator and support services provider from 2.52 per cent to 2.62 per cent. Wong is the founder and managing director of Sirius Venture Capital. He is also the non-executive chairman of NTUC Learninghub and non-executive vice-chairman of Japan Foods Holding. In addition, he is also the lead independent director of Alliance Healthcare Group and independent director of APAC Realty, and non-executive director of Singapore Cruise Centre.