This comes after Sanli saw its earnings tumble 70.5% to $0.66 million in the first half of FY18, down from $2.2 million a year ago, mainly due to higher expenses.
Administrative expenses climbed 25.7% to $2.1 million, mainly due to increase in employees’ remuneration as a result of an increase in headcount and salaries.
Other operating expenses quadrupled to $1.6 million, mainly due to the recognition of one-off IPO expenses of $1.2 million pursuant to its initial public offering in June 2017.
Revenue fell 8.9% to $30.8 million during the quarter, from $33.7 million a year ago.
The decrease in group turnover was mainly attributed to the decrease in contribution from its Operations and Maintenance segment, arising from keen competition and a weaker market experienced during the period.
“The weaker top-line also translated into a weaker profit before tax of 13.4% when we strip out one-off IPO expenses,” says Chua.
As at 3.57pm, shares of Sanli are trading 1 cent lower, or down 3.3%, at 29 cents, implying an estimated price-to-earnings ratio of 13.9 times and a dividend yield of 1.2% in FY18.
