Fuji Offset Plates Manufacturing Ltd: 1H2025 Financial Results Analysis

Fuji Offset Plates Manufacturing Ltd (“FOPM”) has released its condensed interim financial statements for the half-year ended 30 June 2025. The report details the company’s performance across its core business segments—printing cylinders, investment holding, and investment in property development companies. This article provides an in-depth analysis of the key financial metrics, performance trends, and notable corporate events, offering investors a comprehensive view of Fuji Offset Plates’ current standing and future outlook.

Key Financial Metrics

Performance Trends & Analysis

• Revenue: The Group’s revenue fell 14% YoY, primarily due to weaker sales from the printing cylinders segment amidst intense industry competition. This softness was matched by a similar 13% decline in cost of sales.
• Profitability: Gross profit dropped 16%, and net profit declined by a significant 42% YoY. The sharp drop in net profit was largely attributed to a one-off gain from the disposal of investment property in 1H2024 and a swing from a net foreign exchange gain to a net loss in 1H2025.
• Operating Income: Other operating income plunged from S\$985,000 in 1H2024 to just S\$39,000 in 1H2025, reflecting the absence of non-recurring gains and adverse currency effects.
• Investment in Associates: Share of profit from IPark, the Group’s associated company, increased substantially due to higher unit sales and improved margins in 1H2025.
• Cash Flow: The Group saw a net cash inflow, with cash and equivalents increasing to S\$18.13 million, mainly due to dividend receipts from IPark.
• Dividends: A final dividend of 0.5 cents per share for FY2024 was paid, consistent with the prior year.
• Net Asset Value: NAV per share rose modestly to 66.29 cents from 65.61 cents as at the previous year-end.

Exceptional Items and Non-Recurring Gains/Losses

• 1H2024 results included a S\$563,000 gain from the disposal of investment property. There was no similar gain in 1H2025.
• 1H2025 recorded a net foreign exchange loss of S\$310,000, compared to a net gain of S\$141,000 in 1H2024.

Corporate Actions and Events

• Share Placement: In July 2025, the Company completed a S\$4.5 million share placement, issuing 10 million new shares at S\$0.45 each, increasing the share base from 49.91 million to 59.91 million shares. Proceeds are earmarked for business expansion, with no utilization as of the reporting date.
• Divestments & Investments: No major asset disposals or new acquisitions were reported in the period, apart from routine plant and equipment additions and the receipt of substantial dividends from the associated company IPark.
• Related Party Transactions: The Group conducted S\$140,860 of transactions under a shareholders’ mandate, mostly from the supply of printing cylinders and technical services between subsidiaries and related parties.

Balance Sheet Highlights

• Cash and equivalents remain strong at S\$18.13 million, with total assets at S\$36.12 million and low leverage (liabilities at S\$915,000).
• Financial assets at FVPL and FVOCI, mainly related to Star City, saw a decrease due to currency effects rather than asset impairment.
• Investment in associates dropped due to dividend extraction, despite strong profit contribution.

Outlook and Management Commentary

The Board’s tone is cautious regarding the near-term prospects for the printing cylinders business, citing ongoing competitive pressures. The property development investment segment’s outlook depends on regional economic growth, though the management notes challenges from geopolitical risks and tariffs.

Management states:

“The Company is of the opinion that the outlook for the next 12 months for the printing cylinders business segment will remain challenging due to keen competition. The outlook for the Group’s investment in property development companies business segment will largely depend on the region’s continued economic growth. However, this will be challenging given the imposition of tariffs by the United States on the countries in the region and the recent 5-day war between Thailand and Cambodia. With the injection of funds from the recent Subscription … and available funds from the receipts of its investments in IPark, the Company is well placed to source for potential business investments and/or acquisitions as and when such opportunities arise.”

The tone is neutral-to-cautious, highlighting both the risks and the Group’s strengthened cash position for future investments.

Dividend Policy

• No interim dividend was declared for 1H2025. The Board will review the dividend policy at the end of the year.

Unusual Fund Flows & Related-Party Transactions

• Significant dividend inflow from IPark (RM7 million, or S\$2.13 million at 20% share) provided substantial cash, offsetting lower operational cash flow. No material issues or concerns were raised regarding related-party transactions.

Conclusion & Investment Recommendations

Overall, Fuji Offset Plates Manufacturing Ltd’s 1H2025 results reflect a weaker operational performance due to lost one-off gains, currency headwinds, and persistent competition in its core printing cylinders segment. However, the Group’s strong liquidity, low gearing, and large cash reserves (bolstered by a recent share placement and associate dividends) provide flexibility for future investments or acquisitions.

• For Existing Shareholders: Investors currently holding the stock may consider maintaining their position, recognizing the Group’s strong cash position and the potential for opportunistic investments. However, be mindful of the declining profits and the lack of near-term catalysts in the core business.
• For Prospective Investors: Those not currently holding the stock may wish to adopt a wait-and-see approach until there is greater visibility on the turnaround of the printing cylinders segment or evidence of successful redeployment of the Group’s cash reserves into higher-return assets.

Disclaimer: This analysis is based solely on information disclosed in Fuji Offset Plates Manufacturing Ltd’s 1H2025 financial statements. It does not constitute investment advice. Investors should conduct their own due diligence or consult a licensed financial adviser before making investment decisions.

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