With operations in Singapore and China, Tat Seng also has the support of both MNCs and local clients across a spectrum of industries.
From FY11-16, group core net profit expanded by CAGR of 25.7% on the back of its China capacity expansion and rising economies of scale.
In FY16, core net profit rose 12.1% to $13.8 million from a year ago, driven by higher margins for China sales and improving production efficiency from increasing automation.
However, FY16 revenue dipped by a slight 1.3% y-o-y, mainly due to negative forex movement from a weakened renminbi.
At end FY16, group balance sheet strengthened to $8.3 million net cash from $20.6 million net debt at end FY11.
Of the $37.1 million gross debt outstanding at end FY16, only $15.3 million was interest bearing, while the remaining $21.8 million comprised non-interest bearing bills payable.
In FY16, Tat Seng also enjoyed positive free cash flow of $10.9 million, for the fifth consecutive year.
Meanwhile, Tat Seng raised dividend for the third time in four years to a total 4 cents (3 cents ordinary, 1 cent special) in FY16 from 3 cents (2 cents ordinary, 1 cent special) in FY15. This translates into 7.8% FY16 yield and 43% payout.
Shares of Tat Seng are up 2 cents at 56 cents, giving it a market cap of $88 million. The stock has a free float of 20.5%.
