GTI sees its revenues drop in fourth quarter

GTI sees its revenues drop in fourth quarter

Grand Twins International, the second firm to list on the Cambodian Securities Exchange, reported $13.27 million in revenues during the last three months of 2014, down 28.6 per cent from its figures reported in 2013.

While the Taiwanese garment factory’s unaudited financial report for the fourth quarter of 2014 showed improved revenues from the $10.9 million reported in the third quarter of 2014, it fell short of the $18.58 million it made during last quarter of 2013.

Soleil Lamun, deputy director of market operations department at the CSX, said that the decrease in GTI’s revenue might affect investor sentiment and stock price in the near term, but a different strategy could help it going forward.

“For the long run, it depends on new strategies put in place by GTI’s management to regain the market or to adapt to the new situation of the industry,” he said.

Lamun added that the new strategies might be made known in the next annual report.

GTI attributed a drop in third quarter revenues last year to the labour unrest that began in January 2014. The strikes had buyer’s moving their orders away from Cambodia in order to maintain their supply flow.

Cheat Khemera, senior officer of Garment Manufacturing Association of Cambodia, said that while the unrest had been quelled and production levels were mostly back to stable levels, there was still progress to be made.

“It is still at the transition stage as buyers are still carefully considering before they put the order,” Khemera said.

“Stability needs be ensured to build trust for buyers.”

Profit after tax for the fourth quarter was $1.03 million, compared with $5.5 million the company raked in during the same period in 2013. Earnings per share also took a hit in the last quarter, registering at $0.03, whereas it was $0.70 in 2013.

GTI closed at 5,200 ($1.30) riel yesterday, up 4.42 per cent from Monday and the CSX Index closed at 399.16, a gain of 1.47 per cent from the previous day.

GTI became the second company to list on the CSX in June 2014, after the Phnom Penh Water Supply Authority listed in 2012.

The garment manufacturer raised $20 million during the intial public offering and had an price of $2.41 per share.