S$0.11-LONG.SI
4Q ended June 2011’s swung into a loss of Rmb57mln from profit of Rmb44mln a year ago, dragging full year bottom-line into loss of Rmb72mln versus profit of Rmb159mln last year, reflecting intense price pressures, rationalizing of their customer base, weak demand for their 2-2.5G phones.
With continued weak demand for their products and continued high operating costs for development of new products as well as cost inflation, management expects to continue to remain loss making in the coming quarters. They will embark on further restructuring exercises to reduce employees and rationalize their customer base in the hope to returning to profitability.
Last year’’s 4 cents (2 cents interim and 2 cents final) dividend was discontinued. The company’s cash position reduced from Rmb381mln to Rmb254mln while debts rose from zero to Rmb120mln.
Despite its depressed share price, trading at just 1 cent above its all time listing low, we do not see any reason to want to own the stock still.
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