JETCON reports 66% decrease in first quarter net profit

May 15, 2019

Jetcon Corporation Limited (JETCON) for the three months ended March 31, 2019, reported a 20% fall in turnover to $246.07 million (2018: $305.94 million). According to the Company, “We attribute the fall in sales to customers realigning their finances to qualify for mortgages as the housing market gains strength and persons to go in search of houses. However we expect that some normality will return to the market soon. To date we have seen increased orders for cars for the month of May.”

Cost of sales also decreased by 16% to $202.09 million (2018: $241.55 million), while gross profit decreased by 32% to $43.98 million compared to $64.40 million in 2018.

Total Expenses recorded an increased of 44% to $28.76 million (2018: $69.45 million). This as selling and marketing expenses decreased to $5.71 million (2018: $5.91 million), while administrative and other expenses recorded an increase of 62%, closing at $17.95 million (2018: $11.06 million). Finance costs closed the period at $3,847 a vast reduction when compared to the prior year’s first quarter of $601,910. Other operating costs for the quarter rose 112% to close at $5.09 million versus $2.40 million booked in 2018.

Consequently, profit before taxation amounted to $15.22 million relative to $44.48 million in 2018 representing a 66% decrease year-on-year for the period.

There were no tax charges for the period, resulting in a first quarter net profit of $15.22 million compared to $44.48 million for the corresponding quarter of 2018.

Total comprehensive income amounted to $15.22 million (2018: $44.48 million).

As such, the earnings-per-share for the first three months of 2019 amounted to $0.03 relative to $0.08 for the same quarter last year. The trailing twelve months earnings per share totaled $0.11 (EPS:2017: $0.04). The number of shares used in our calculation is 583,500,000. JETCON’s last traded price as at May 15, 2019, was $2.50.


Balance Sheet Highlights:

The company, as at March 31, 2019, recorded total assets of  $559.19 million, an increase of 8% when compared to $517.92 million recorded last year. The increase in the asset base was due mainly to a $65.89 million increase in inventory which closed at $401.52 million (2018: $335.63 million). JETCON noted the movement in inventory was, “owing to the decline in sales not depleting stock as fast as expected. Total receivables amount to $65 million which include amounts deposited with suppliers for goods.”

Total Stockholders’ Equity as at March 31, 2019, closed at $519.77 million (2018: $478.70 million) resulting in a book value per share of $0.89 per share compared to $0.82.




Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.