Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
E. BON HOLDINGS
HKEx Stock Code : 00599 
 
Corporate Profile
Principally engaged in the importing and sale of architectural builders hardware and fittings, bathroom and kitchen collections and furniture in Hong Kong and the provision of construction services for developers in the People's Republic of China (the ˇ§PRCˇ¨).

Business Review - For the year ended March 31, 2013

For the year ended 31 March 2013, the Group's operating profit was HK$31.6 million (2012: HK$25.4 million), which increased by 24.4% from the prior year. Profit after tax approximated HK$24.5 million (2012: HK$19.4 million), which increased by 26.3% from the prior year, while the Group's turnover increased by 17.4% from the prior year to reach HK$477.4 million (2012: HK$406.7 million). Earnings per share has increased from HK6.5 cents to HK8.2 cents, representing an increase of 26.3%.

As discussed in our Interim Report, we noted a stabilising property market and a gradual increase in completion rate of residential properties. In Hong Kong, the cooling-down measures implemented by the Hong Kong Government has effectively prevented speculative transactions and encouraged developers to build affordable ˇ§starters' homesˇ¨. Expectation of the eventual phase-out of QE3 and the end of low-interest rate period, as indicators of recovery of the global economy, will facilitate a steady growth of the property market going forward.

As part of the continuous improvement, we have further invested to renovate our retail outlets, refine our product display strategies and enhance the effectiveness of our display areas. This will enhance the utilisation of our shops in view of the inflationary rental expenses.

Wholesale/Retail

Our wholesale operation recorded a significant growth of 31.2% and reported sales of HK$349.9 million for the year ended 31 March 2013 (2012: HK$266.6 million). This is in line with the rise in residential property completion rate. During the year, we supplied products to property development projects like Century Gateway, Grand Hyatt Hong Kong, One West Kowloon and Argenta.

The performance of our retail segment dropped slightly to HK$114.7 million (2012: HK$126.6 million). Since the adoption of various cooling-down measures, we noted an easing off in the secondary property market, which affects the demand for interior renovation. In addition, to achieve better inventory management, we target a higher inventory turnover by offering promotional discounts in our retail outlets.

Business Outlook - For the year ended March 31, 2013

The supply of residential and commercial properties is expected to boost in the coming years. We believe that an expansion in construction projects is likely to be on the horizon.

We constantly stretch our reaches to various markets. Capitalising on our solid relationship with property developers, we are extending our product supply for projects from ironmongery, sanitary ware and kitchen cabinets to high-end furniture. While the current furniture projects are relatively small in scale, we expect a promising growth in this operation.

ˇ§Well begun is half doneˇ¨. Our proven performance in the PRC provides opportunities for us to collaborate with developers on the subsequent phases of their construction projects. Having established a sound portfolio in Shanghai, we are gaining opportunities of new projects in other cities in the PRC. While we shall uphold our service standard to maintain our competitive edge, high-end luxuriously furniture and kitchen cabinet is gaining popularity in the PRC market. With this trend continues, we expect to see our effort in cultivating this market will turn into a good harvest in the future.

Source: E.Bon Holdings (00599) Annual Results Announcement
Chairman TSE Sun Fat, Henry Issued Capital (shares) 300M
Par Value HKD 0.1 Market Capitalisation (HKD) 240M
 
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