Chasen Holdings Limited: Net Profit Growth Boosted by Strategic Divestment

Business Description

Chasen Holdings Limited is an SGX Mainboard-listed investment holding company headquartered in Singapore. The company offers one-stop integrated solutions in Specialist Relocation services, Technical & Engineering services, and Third Party Logistics (3PL) management. With operations in Singapore, Malaysia, Vietnam, China, India, and the U.S.A., Chasen serves global customers in industries such as semiconductor manufacturing, EV & battery production, GreenTech, consumer electronics, and more [[3]].

Industry Position and Competitors

Chasen operates in highly specialized markets with a diversified revenue base. The company has established long-standing customer relationships and brand recognition, which provide a competitive edge. However, in sectors like 3PL, it faces supply chain challenges and competition [[2]].

Revenue Streams and Customer Base

The company’s revenue is mainly derived from its Specialist Relocation segment, which contributed significantly to the 24% increase in revenue [[1]]. Chasen’s customer base spans various high-tech industries, ensuring a broad and diversified revenue stream [[3]].

Financial Statement Analysis

Income Statement

For 1HFY2025, Chasen reported a revenue of S\$54.0 million, up 24% from S\$43.5 million in 1HFY2024. Gross profit increased by 36% to S\$11.4 million. The net profit before tax from continuing operations surged to S\$26.8 million, significantly boosted by a S\$37.2 million gain from the divestment of the City Zone Group [[1]].

Balance Sheet

Net asset value per share increased to 22.8 Singapore cents as of 30 September 2024, from 15.1 Singapore cents as of 31 March 2024 [[1]].

Cash Flow Statement

The financial report does not provide specific details on cash flow; however, improvements in net profit and asset value suggest a positive cash flow trend.

Dividend Information

A special dividend of 3 Singapore cents per share has been declared, reflecting the profit from the strategic divestment [[2]].

Key Findings

• Significant net profit growth driven by strategic divestment.
• Improved performance in Specialist Relocation and Technical & Engineering segments.
• Challenges in the 3PL segment due to supply chain issues.
• Increased net asset value and special dividend declaration.

Special Activities

Chasen has signed a Sale and Purchase Agreement to divest 90% of its stake in Suzhou Promax Communication Technology Co., Ltd. This move aims to strengthen the Group’s financial position by reallocating resources to core business areas [[2]].

Recommendations

Current Investors

Hold the stock. The company’s strategic divestment and strong performance in key segments highlight potential for continued growth and value creation.

Potential Investors

Consider buying the stock. The significant net profit increase and special dividend indicate a strong financial position and commitment to shareholder returns.

Disclaimer

The above recommendations are based on the financial report provided and are not a guarantee of future performance. Investors should conduct their own due diligence before making any investment decisions.