SINGAPORE - A-Sonic Aerospace, which recently exited the Singapore Exchange' s watch list, has posted strong interim results, thanks to a sharp pickup in global freight and logistics demand.

 

The mainboard-listed company also unveiled a one-for-four bonus share issue just after unveiling its second-quarter and half-year numbers.

 

The company reported net earnings of US$5.44 million (S$7.49 million) for the six months to June 30, 35 per cent higher than the US$4.04 million recorded a year earlier.

 

Revenue rose 15.1 per cent to US$222.51 million compared with US$193.39 million last year.

 

The results translated into earning per share of 5.94 US cents.

 

The company' s net tangible assets stood at $60.5 million as at June 30, translating into 85 Singapore cents per share.

 

While A-Sonic reports its earnings in US dollars, it uses Singdollars to denote its other financial data.

 

The company, which specialises in aviation and logistics in 29 cities in 16 countries, had cash and cash equivalent of $95.8 million as at June 30 and no borrowings.

 

A-Sonic' s earnings before interest, tax, depreciation and amortisation grew at a compounded annual rate of 90 per cent between 2018 and 2021.

 

Its second-half performance is traditionally stronger so the company expects results for the full year to be good, barring unforeseen circumstances.

 

" Last year, our second-half revenue was 38 per cent higher than the first half, while profit was 56 per cent higher," said chief executive and controlling shareholder Janet Tan.

 

She added that the one-for-four bonus share issue was to reward loyal investors and also increase the liquidity of the stock.

 

" The 17.7 million new shares will result in a 25 per cent increase in the company' s existing issued share base to 88.9 million," she added. " While we may not have declared an interim dividend, this represents a generous dividend payout of sorts for our loyal shareholders."

 

This is not the first bonus issue from A-Sonic.

 

Earlier this year, the company completed a 14.6 million free warrants issue to shareholders.

 

The one warrant-for-four shares deal enabled shareholders to convert their bonus warrants into shares on a one-for-one basis at an exercise price of eight cents.

 

At the time, the conversion translated into shareholders getting their A-Sonic shares at an 88 per cent discount to the then prevailing price. The 12.7 million new shares issued boosted A-Sonic' s share base by 21.6 per cent.

 

After almost three years, A-Sonic was released last month from the SGX watch list after it met the $40 million minimum market capitalisation threshold.

 

On Jun 30, A-Sonic Aerospace : BTJ +2.19% CEO Janet LC Tan acquired 81,000 shares of the company for a consideration of S$55,591, at an average price of 68.6 cents per share. This took her direct interest in the company from 60.01 per cent to 60.12 per cent. She has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018.

 

Tan has over 20 years of extensive experience in the aviation industry, with her responsibilities at A-Sonic Aerospace including the setting of the overall long-term business direction, developing business strategies, and implementing growth strategies for the A-Sonic Aerospace and its subsidiaries.

 

Effective Jun 30, A-Sonic Aerospace was removed from the SGX-ST Watch-List with its average daily market capitalisation exceeding the required S$40 million over the 6 months since Nov 12, 2021.

SINGAPORE - Logistics, aviation and supply chain business specialist A-Sonic Aerospace has finally been removed from the Singapore Exchange' s (SGX) watch list, five years after it was cited.

 

The company was put on the list in June 2017 after recording pre-tax losses for the three previous consecutive financial years and for failing to meet the requirement of having an average daily market capitalisation of at least $40 million over the previous six months.

 

Its market cap in June 2017 was about $11.5 million.

 

The company appealed to be released from the watch list last month.

 

A-Sonic chief executive Janet Tan said she was delighted. " Life can get a little bumpy sometimes. We have to brace ourselves for such times. Going forward, we shall continue to reinforce our core strengths, and improve on what we do well."

 

The company has 71 million shares outstanding, giving it a market cap of around $52 million.

 

This comes after it raised its share base by 14.7 million via a one-for-four shares warrant issue, which was completed in April.

 

Despite being on the watch list, the company' s financials have improved over the past four years.

 

A-Sonic operates in 29 cities in 16 countries, across Asia, North America, India and Europe.

 

Pre-tax profit grew from $1.1 million in the 2018 financial year to $4.7 million in 2019, $10.9 million in 2020 and $14.3 million last year.

 

A-Sonic has also paid dividends for the past four years.

 

Last year, it distributed a record 5.8 cents a share to investors, including a special dividend of 4.8 cents.

 

The company' s net tangible asset per share stood at 97.6 cents at the end of the 2021 financial year, while it had cash and cash equivalents of 91.1 cents per share.

 

The SGX watch list, which has about 100 companies on it, was set up in 2008 as part of efforts to " improve the overall quality of listed companies in Singapore, and promote investor confidence in the marketplace" .

 

It applies to mainboard issuers but not investment funds, global depository receipts, debt securities, exchange-traded funds, structured warrants or companies with secondary listings.

 

Watchlist reviews are conducted in June and December each year.

 

A-Sonic is believed to be the first company to be released from the SGX Watchlist this year.