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Weak demand for telco products to sink Memtech into the red in Q2
Profit were also battered by increased expenses.
Memtech is bracing to sink into the red in Q2, as it issued an announcement for net loss due to weaker demand for the firm’s telco products as well as higher costs.
According to a report by OCBC, Memtech’s profits will also be impacted by the delay in the fulfillment of a major order at the customer’s request.
“We had previously projected a 2Q16 net profit of S$0.65m, which included an assumption of a 13% YoY drop in telecommunication revenue. Our forecast for full-year net profit was at S$6.23m,” OCBC notes.
“Our forecasted FY16 distribution yield was 4.7% against yesterday’s closing price of S$0.64,” it adds.
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