FAST NEWS: Tat Hong swings to the red on project delays
The latest: Construction equipment maker Tat Hong Equipment Service Co. Ltd. (2153.HK) warned on Wednesday it expects to report a net loss of 35 million yuan ($4.9 million) to 45 million yuan for its latest financial year through March, reversing a 47.6 million yuan profit in the previous year.
Looking up: A non-operational, one-off exchange loss related to conversion of foreign currency loans to yuan loans was partly blame for the loss.
Take Note: The fall into the red also owed to China’s Covid controls last year, which caused some of the company’s projects to be delayed.
Digging Deeper: Tat Hong makes and sells tower cranes used at large civil engineering sites to move building materials around quickly. Its cranes are expected to be in high demand for construction of green buildings and green energy farms as China works to achieve its goals of reaching peak carbon emissions by 2030 and carbon neutrality by 2060. But the company suffered last year as its interim results showed the severity of impact from pandemic controls on the construction industry.
Market Reaction: After opening 7.3% lower on Thursday, Tat Hong’s shares recouped all the losses and closed up 0.8% at HK$1.25 for the day. The stock now trades in the middle of its 52-week range.
Translation by Jony Ho
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