Between Feb 25 and March 1, Fu Yu Corporation independent director Haytham T KH S Al Essa acquired one million shares of the listed company for a consideration of S$285,000.

 

This took the direct interest of the recently appointed director to 0.13 per cent.

 

On Feb 23, Fu Yu Corporation reported that its FY20 (ended Dec 31) net profit grew 33.3 per cent to S$16.9 million from S$12.7 million in FY19, with the group ending the year with a cash balance of S$106.6 million and zero borrowings.

 

Although group revenue was softer, group CEO Elson Hew noted that the Singapore operations had displayed a resilient performance with stable revenue and higher segment profit.

CGS-CIMB Research&rsquo s William Tng has maintained his &ldquo add&rdquo call on Fu Yu Corp and raised his target price to 35.5 cents, up from his previous figure of 28.8 cents. 

 

Tng said that the company&rsquo s FY2020 revenue, which came in 15.9% lower y-o-y at $81.9 million was &ldquo in line&rdquo with his expectations, and that the 24.7% growth in profits to $9.5 million was 9% above his forecasts.

 

The better-than-expected net profit performance was due to a leaner cost structure achieved with the restructuring of its China operations. 

 

Tng highlighted that selling and administrative expenses fell 17.4% y-o-y in FY2020, and other notable items in FY2020 results were a gain on disposal of property, plant and equipment of $1.7 million.