On Aug 31, Credence Capital Fund II (Cayman) disposed of its 19.08 per cent direct interest of 20,917,018 shares in XMH Holdings in a married deal at S$0.35 per share. This coincided with XMH Holdings chairman and managing director Tan Tin Yeow acquired 5,851,918 shares at an average price of S$0.35 per share between Aug 29 and Sep 5. With a consideration of S$2,041,571 it increased his direct interest in the company from 44.22 per cent to 49.56 per cent.

 

Tan has gradually increased his direct interest in the diesel engine, propulsion and power generating solutions provider from 41.27 per cent prior to Aug 25, 2022. He was appointed XMH Holdings chairman and CEO in October 2010 and re-designated chairman and managing director in September 2016.

 

His overall responsibility for the group includes strategy formulation, corporate planning, business development and potential acquisitions. Tan was also responsible for establishing the distribution arm and securing the exclusive distributorships for the group.

 

XMH Holdings executive director Tan Guat Lian also acquired 5,229,000 shares at S$0.35 per share on Aug 31. With a consideration of S$1,830,150 this increased her total interest in the company from 6.16 per cent to 10.93 per cent.

 

She was appointed executive director (human resource & administration) in October 2010. She has more than 20 years of experience in administration and human resources.

 

XMH Holdings was placed on the SGX-ST watch-list (financial entry criterion) from Dec 4, 2019. In December 2022, XMH Holdings announced it had been granted an extension of time to Dec 4, 2023, to comply with the SGX-ST Listing Manual to exit the watch-list.

 

In responses to queries from shareholders on the company&rsquo s FY22 Annual Report, Tan Tin Yeow highlighted that during the past few years, the group has not only navigated the challenges brought about by the unprecedented Covid-19 pandemic, the global supply chain disruptions, ongoing conflicts and tensions as well as interest rate hikes around the world, it has also turned around its business to record profitability in the last three consecutive years.

 

He added that having fulfilled the financial entry criterion through the group&rsquo s continuous hard work and efforts, the group has also been considering and evaluating its options to fulfil the market capitalisation criterion to exit the watch-list.

 

He maintained that on many accounts, market capitalisation is very much dependent on the prevailing market forces so much so that even corporate actions, if taken, do not guarantee success in achieving this.

 

He said that the group would adopt a holistic approach and will consider all relevant factors and market conditions before deciding for the benefit of shareholders. In the meantime, what the group can do is to continue to focus and strive for profitability which it has managed to achieve in the last three financial years, he added.

Between Jun 28 and Jul 3, XMH Holdings : BQF +1.64% chairman and managing director Tan Tin Yeow acquired 600,000 shares at an average price of S$0.30 per share. With a consideration of S$180,150 this increased his direct interest in the company from 43.38 per cent to 43.93 per cent. His preceding acquisition was on Mar 6 with 1,241,825 shares acquired at S$0.27 per share. Tan has gradually increased his direct interest in the diesel engine, propulsion and power generating solutions provider from 41.27 per cent prior to Aug 25, 2022. Tan was appointed the XMH Holdings chairman and CEO in October 2010 and re-designated as chairman and managing director in September 2016. He bears overall responsibility for the group as well as strategy formulation, corporate planning, business development and potential acquisitions.

 

XMH Holdings was placed on the SGX-ST watch-list due to Financial Entry Criterion with effect from Dec 4, 2019. In December 2022, XMH Holdings announced it had been granted an extension of time to Dec 4, 2023, to comply with the SGX-ST Listing Manual to exit the watch-list.

 

On Jun 27, XMH Holdings reported profit after tax for FY23 was up 29.2 per cent from FY22 (ended Apr 30) to S$3.97 million. Group revenue for FY23 amounted to S$128.7 million, a significant increase of S$56.8 million or 79 per cent compared to FY22. The distribution segment recorded a significant increase of 124.1 per cent from S$23.4 million in FY22 to S$52.5 million in FY23, mainly due to increased demand for engines to build transportation tugboats in Indonesia. The project segment recorded an increase of 70.1 per cent from S$38.0 million in FY22 to S$64.7 million in FY23, mainly due to substantial completion of a major project as well as income recognition based on performance obligation for some major contracts in FY23. The third segment, which comprises after-sales service, recorded an increase of 10.1 per cent from S$10.4 million in FY22 to S$11.4 million in FY23, mainly due to demand of spare parts for service and maintenance of vessels.

 

At the same time, the group&rsquo s cost of sales also increased from FY22, with a decrease in the gross profit margin from 27.3 per cent in FY22 to 21.3 per cent in FY23, mostly attributed to the development in the project segment. This included the group substantially completing a major project tendered with low margin for strategic reasons, in addition to increased materials cost and a shortage of labour resulting in having to subcontract out certain job functions.

 

While the group achieved an increase in revenue and gross profits in Q4 FY23, it remained cautious in terms of its outlook given that global uncertainties, brought about by the ongoing geopolitical tensions, are expected to continue disrupting the global supply chain, costs of materials and energy prices. The group maintains that to mitigate the impact on its business, it will continue to focus on further improving its operational capabilities, strengthening its existing business and cost-tightening measures across its business segments. In addition, the group will also continue to manage its inventory level so as to mitigate any possible shortfall in the near future due to supply chain disruptions. XMH Holdings also highlighted with its FY23 results that its distribution segment continues to see strong demand for its engines for new and/or replacement transportation tugboats and its project segment continues to record healthy orders mainly from data centres and infrastructure projects.

 

While the stock is among the less traded in terms of turnover, its average daily turnover for the year thus far is up threefold from 2022 levels to near S$5,000 per day. The stock also ranks among the 100 Singapore stocks that have booked the highest net institutional inflows this year.

 

XMH Holdings BQF 0.00% has reported earnings of $3.14 million for its 2HFY2023 ended April, reversing from a loss incurred in the previous corresponding period.

 

Revenue in 2HFY2023 amounted to approximately $70.7 million, up 83.1% y-o-y on the back of increased demand for engines to build tugboats in Indonesia as well as income recognition based on performance obligation for major contracts during the period.

 

Cost of sales increased significantly by 99.6% y-o-y to $55.2 million in 2HFY2023. This was in line with the significant increase in revenue.

 

However, gross profit only increased by 41.4% to $15.5 million as gross profit margin decreased to 21.9% in 2HFY2023. This is due to decreased gross profit margin from its project segment due to increased materials cost as well as shortage of labour.

 

For the full year, the company recorded revenue of $128.7 million, up 79% y-o-y. Cost of sales increased 93.9% y-o-y to $101.3 million, while gross profit increased by 39.4% to $27.4 million.

 

A special dividend of 1.25 cents and a final dividend of 0.25 cents have been proposed for its FY2023.

 

Despite the challenging business environment, XMH believes that it will be able to capitalise on the good performance achieved in FY2023 on the back of a robust order book.

On Dec 28, XMH Holdings : BQF 0% chairman and managing director Tan Tin Yeow acquired 27,500 shares at S$0.24 per share. With a consideration of S$6,600, this increased his direct interest in the company from 42.14 per cent to 42.17 per cent.

 

Tan has gradually increased his direct interest in the diesel engine, propulsion and power generating solutions provider from 41.27 per cent prior to Aug 25, 2022.

 

He was appointed as managing director in 1991, and chairman in September 2016. He bears overall responsibility for the group as well as strategy formulation, corporate planning, business development and potential acquisition.

 

On Dec 12, XMH Holdings reported revenue of S$57.9 million in its H1 FY23 (ended Oct 31), a 74.3 per cent increase from S$33.3 million in H1 FY22.

 

All three business segments have recorded increased revenue with the distribution segment recording a significant increase of 109.5 per cent to S$22.8 million in H1 FY2022, mainly due to demand for engines to build tugboats in Indonesia.

 

On Oct 4, XMH Holdings : BQF 0% chairman and managing director Tan Tin Yeow acquired 107,000 shares at 24.0 cents per share. With a consideration of S$25,680 this increased Tan&rsquo s direct interest in the company from 41.92 per cent to 42.02 per cent. Tan has gradually increased his direct interest in the diesel engine, propulsion and power generating solutions provider from 41.27 per cent prior to Aug 25. He was appointed as managing director in 1991, and chairman in September 2016. He bears overall responsibility for the group as well as strategy formulation, corporate planning, business development and potential acquisition.

 

He was also responsible for establishing the distribution arm and securing the exclusive distributorships for the group and has more than 25 years of experience in the marine and industrial diesel engines industry. In its quarterly update, pursuant to its placing on the watch-list due to Financial Entry Criterion with effect from Dec 4, 2019, XMH Holdings noted that although the group has achieved an increase in revenue and profits for Q1 FY23 (ended Jul 31), the group maintains a cautious outlook given the conflict in Europe coupled with the global uncertainties brought about by the ongoing geopolitical tensions.

 

Between Sep 9 and Sep 13, XMH Holdings : BQF +2.17% chairman and managing director Tan Tin Yeow acquired 218,100 shares at 23.0 cents per share at a consideration of S$50,163. As a result, his direct interest in the company increased from 41.68 per cent to 41.88 per cent.

 

Tan was appointed as chairman and chief executive officer in 2010 and was re-designated as chairman and managing director in 2016. He bears overall responsibility for the XMH Group as well as strategy formulation, corporate planning, business development and potential acquisition. He was also responsible for establishing the distribution arm and securing the exclusive distributorships for the group and has more than 30 years of experience in the marine and industrial diesel engines industry.

 

For its FY 2022 (ended Apr 30), the diesel engine, propulsion and power generating solutions provider reported a revenue increase of 12.0 per cent to S$71.9 million from FY 2021, while gross profit increased by 24.1 per cent to S$19.6 million from FY 2021. This resulted in a greater gross profit margin of 27.3 per cent in FY 2022.

 

XMH Holdings&rsquo business activities include the distribution and provision of value-added products and services after sales services and trading and projects, which comprise the assembly and installation of standby generator sets and provision of related services.

 

In its quarterly update, pursuant to its placing on the watch-list due to Financial Entry Criterion, with effect from Dec 4, 2019, XMH Holdings noted that although the XMH Group has achieved an increase in revenue and profits for Q1 FY 2023 (ended Jul 31), the XMH Group maintains a cautious outlook given that the conflict in Europe coupled with the global uncertainties brought about by the ongoing geopolitical tensions continue to disrupt the supply chain and costs of materials.