24-06-12 - Paul Y. Engineering Announces FY2012 Annual Results

Paul Y. Engineering Group Limited (“PYE” or “the Group”) (0577.HK), announced its annual results for the year ended 31 March 2012. Turnover amounted to approximately HK$4,304 million (2011: HK$4,334 million), slightly down by 1% year-on-year as certain management contracting business was carried out through joint ventures with other contractors. Taking into account the share of turnover of associates and jointly controlled entities attributed to the Group, the turnover would be approximately HK$4,714 million (2011: HK$4,462 million), up by 6% year-on-year. Profit attributable to shareholders was approximately HK$30 million (2011: HK$30 million). The Board proposed a final dividend of 1.0 HK cent per share (2011: 1.0 HK cent).

Ir James Chiu, Chairman of PYE, said, “In spite of persisting turmoil in the global economy during the year under review, the Group secured new contracts with a total value of about HK$8.9 billion, an increase of about 90% year on year.”

Ir Dr Stanley Wong, Executive Director & CEO, said, “Construction industry in Hong Kong and Macau has continued to develop vigorously due to subsisting demands of construction expertise in these two regions. Our strategy to efficiently plan our resources and reserve capacity for the supply- side market has also proved to be successful. However, the supply of human and other resources remain tight and the profit margin is constrained by the severe competition in the market.”

Ir Dr Wong added, “As at year end, the value of contracts on hand was approximately HK$15,106 million, reaching a new high since 2005. Subsequent to the year end, the Group secured further contracts of approximately HK$887 million. Besides the local market, the Group will put more focus on premium projects in Macau, and continue to diversify its risks through joint ventures with other contractors.”

Ir Chiu stated, “The outlook of the local construction industry in the next few years remains positive as it would still be bolstered up by the huge investment in infrastructure and public housing by the HKSAR Government. The Group will continue to explore and capture any opportunity to expand and diversify its business and maximize returns to our shareholders.”