XMH Holdings' net profit jumped 20% to SGD11.4m

Asian expansion now underway.

According to OSK, XMH's FY13 revenue jumped 57% y-o-y due to organic growth and a surge in revenue in 4QFY13. 

Margins were slightly compressed by its product mix and the effects of a weaker Yen, while overheads expenses rose 20% as XMH added more staff. Net profit for the full year grew 20% to SGD11.4m.

Here's more:

1.2 cent dividend nearly meets expectations. XMH declared a 1.2 cent dividend (1 cent ordinary, 0.2 cent special) that is 0.2 cent higher yo-y versus our original expectation of 1.3 cents. We expect a payout ratio of about 40% going forward, in line with historical experience.

Already dominant in Indonesia, eyes regional growth. Based on its strong core operations in Indonesia, XMH is looking to expand its sales network to Vietnam and India. The completion of its new facility in FY16 will give XMH the capacity to serve more markets in the region.

An acquisition likely within 2 months. In tandem with our expectation as stated in our 20 May report, we envisage the company making an acquisition within a three-month call option period. Our figures already include a SGD3m net profit contribution from this acquisition for FY14F-15F to incorporate our growth expectations.