What’s New
- Extends deadline to be taken off the SGX watch-list. Plastoform Holdings (Plastoform) has received approval from the Singapore Exchange (SGX) to extend its deadline to submit an application to be taken off the SGX watch-list by about 12 months to 4 Mar 13.
- Moving up the value chain with new products. Plastoform is moving up the value chain and transforming itself from an original equipment manufacturer (OEM) to an original design manufacturer (ODM) of PC speakers. The group has rolled out new products such as Bluetooth speakers.
- Turnaround in 4Q11. Plastoform reported a net profit of HK$17.7m in 4Q11, its first profitable quarter since 2007. Strong demand for its in-house-designed wireless lifestyle audio products lifted revenue by 56.4% yoy to HK$151.1m, with 90% of the growth driven by increased sales from the ODM business.
- Rights issue. Plastoform raised S$15.2m in a rights issue in Feb 12, with the proceeds used for working capital as well as to lift its share in the rapidly expanding wireless lifestyle audio product market.
- Requirements for removal from the watch-list. Under rules of the listing manual, a company may apply for removal from the watch-list if it records a consolidated pre-tax profit from operations for its latest financial year and whose average market capitalisation is at least S$40m over 120 trading days. The group’s current market capitalisation is S$41.9m.
- On track for turnaround. Since Sep 11, Plastoform has seen a significant ramp-up in orders from top-tier customers such as Logitech. Going forward, the group will continue to restructure its business operations and allocate resources to focus on ODM products.
- Plastoform is trading at 3.0x P/B, above peers’ average of 1.5x. We do not use the PE ratio as a basis for comparison as the group recorded losses in the last financial year.
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