YHI profit zooms 39% to $20m
CAR tyre distributor YHI International is on a roll, with full-year net profit jumping 39 per cent to $20.3 million as earnings growth in its key business segments roared ahead.
It is proposing a one-for-five bonus share issue.
Turnover for the year to Dec 31 rose 32 per cent to $291.3 million.
YHI, whose shareholders include Temasek Holdings with a 6.1 per cent stake, attributed the higher earnings to growth in its distribution and manufacturing businesses.
The distribution business accounted for 56 per cent of the group's profit last year, while manufacturing contributed 44 per cent.
The company sells Yokohama brand of tyres, industrial batteries and golf buggies.
Revenue from the distribution business increased 28 per cent to $207.1 million.
The company said the revenue was driven by higher tyre sales in seven Asean countries, China and the Oceania region which includes Australia and New Zealand. The Asean countries are Singapore, Indonesia, Brunei, Malaysia, Vietnam, Cambodia and Myanmar.
Another key business is manufacturing alloy wheels at its factories in Taiwan and China. Turnover from this segment jumped 43 per cent to $84.2 million.
Managing director Richard Tay,told The Straits Times that the company plans to focus on growing its manufacturing business over the next three years.
It will build two more factories to increase capacity - one in Malaysia and the other in Suzhou, China. They are expected to start operating early next year.
YHI proposed a final dividend of 0.6 cent per share. Earnings per share rose
to 8.35 cents from 7.31 cents, and net asset value per share to 42.98 cents
from 35.81 cents. - AZHAR KHALID.
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