26-06-11 - Paul Y. Engineering Announces FY2011 Annual Results

Paul Y. Engineering Group Limited (“PYE” or “the Group”) (0577.HK), announced its annual results for the year ended 31 March 2011. Turnover amounted HK$4,334 million (2010: HK$3,645 million), up by 19% year-on-year. Profit attributable to owners of the Company was HK$30 million (2010: HK$45 million). The Board proposed a final dividend of 1.0 HK cents per share.

Ir James Chiu, Chairman of PYE, said, “Competition within the industry remained keen under the shortage of competent professional staff and skilled labors. We will keep our strategy this year to maintain a reasonable profit margin while achieve a balance between expanding our order book with quality projects.”

Ir Dr Stanley Wong, Executive Director & CEO, said, “The continued surge in capital works expenditure by both private and public sectors resulted in demand for construction and project development services. New contracts secured during the year amounted to approximately HK$4,670 million. The Board is pleased to propose a final dividend of 1.0 HK cents per share, which equals to a pay-out ratio of approximately 20% for this financial year.”

Ir Dr Wong added, “As at year end, the aggregate value of contracts on hand was approximately HK$10,407 million. Subsequent to the year end, the Group secured further contracts of approximately HK$1,656 million. We have new contracts in a wide variety including public and private residential developments, commercial development, community facilities and major infrastructures in Hong Kong, Macau and the Mainland China.”

Ir Chiu stated, “The prospect of the local construction industry is well-bolstered as the capital works expenditure invested by the HKSAR Government for each of the next few years will exceed HK$60 billion with the ten major infrastructure projects and other projects entering their construction peaks. We will explore new business opportunities to enhance the return to our shareholders.”