The share price of Tai Sin Electric fell to S$0.40 after the company released a set of poor results. Despite increasing copper prices, it is heartening to know the company posted a revenue increase in the Cable & Wire business segment although gross profit margin was lower. This segment makes up the largest percentage of the company revenue.
Overall, the company cash and cash equivalent decreased to $19.74 million compared to $22.08 million at the end of the last period. This is a 10.6% decrease in cash flow. In summary, the company suffers from higher administrative expenses such as staff costs, foreign exchange loss (weaker US dollar against Singapore dollar) and higher advertising and marketing expenses in Vietnam.
Cable & Wire (C&W)
The Cable & Wire segment posted an increase in revenue of $15.5 million. Tai Sin Electric attributed this to the surge in copper …