Stonger Sales Boost WISYNCO’s Bottom-Line
- WISYNCO reported a 27.8% increase in unaudited net profit to $2.93Bn (EPS: $0.78) for the year ended June 30, 2019. This outturn was driven by an increase in sales volumes that resulted in a 16.9% expansion of revenue. In particular, for the fourth quarter, the company saw a greater percentage increase in sales of existing third party products within its portfolio.
- Despite the increase in revenues, management states that some challenges were experienced in the fourth quarter that resulted in a slightly lower gross profit margin for the period, moving from 37.2% in 2018 to 36.7% in 2019.
- Nevertheless, the company has implemented initiatives that it believes will improve the gross profit margin in the near term. Overall, WISYNCO’s cost of operation was fairly well-maintained, as the net profit margin grew by 90 bps to close the year at 10.2%.
- The stock has advanced by 121.8% YTD and currently trades at a P/E of 31.12x earnings. This is above the main market manufacturing and distribution sector average of 20.27x earnings as of Monday, August 20th
(Source: Wisynco Financials)