Pan-united’s profit plunged 30.5% to $8.5m in Q3

Earnings also slipped 8%.

Pan-united’s third quarter results were dragged down by intense competition in its basic building resources (BBR) division. The firm reported a core net profit of $8.5m in Q3, down 30.5% from $12.3m in the same quarter last year.

According to CIMB, Pan-united was particularly impacted by intense competition and lower selling prices in its BBR division, amid muted demand and creeping costs.

“PAN is benefiting from the operational synergies of the port division’s newly expanded capacity. Cargo throughput in the port will continue to drive earnings, and we believe that it is management’s longer-term intention to monetise its port and logistics business by spinning it off via an IPO. Overall, PAN has over the last 12 years delivered a PATMI CAGR of 11%, and we view the short-term share price weakness as a good buying opportunity. We reiterate our Add call,” noted CIMB.