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| Friday, 21 November 2014, 08:30 HKT/SGT | |
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Source: Quam Limited | |
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Corporate Finance and Equity Capital Markets Business Maintain Growth Momentum
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HONG KONG, Nov 21, 2014 - (ACN Newswire) - Quam Limited ("Quam" or the "Group", Stock Code: 00952.hk), a Hong Kong-based financial services group, announces its unaudited interim results for the six months ended 30 September 2014 (the "Period").
During the Period, thanks to higher contributions from the corporate finance and equity capital markets ("ECM") divisions, the Group recorded an after-tax profit of HK$14,613,000 (2013: after-tax profit of HK$14,287,000). Revenue of Quam amounted to HK$196,310,000 (2013: HK$202,865,000), a decrease of 3% as compared to the corresponding period last year.
The Group's Board of Directors declared the payment of an interim dividend of HK0.5 cent per share for the period ended 30 September 2014 (2013 interim dividend: HK0.5 cent).
Mr Kenneth LAM, the Chief Executive Officer of Quam, said, "During the Period, it is encouraging to see that the Group continues to maintain its earnings momentum. Despite lower trading volume and margin, our securities operation was able to maintain its share of contribution to the Group. Remarkably, the equity capital market activities contributed greater revenues to the Group while the corporate finance division continued its market lead. In addition, Asset management division saw a surge in assets under management. We expect growth momentum to continue in the coming years."
During the Period, revenue of securities and futures business was adjusted 14 % to HK$106,968,000 comparing with the same period last year (2013: HK$124,314,000), which was mainly attributable to a reduction in business volume of both securities and future trading in line with market sentiment. ECM's fee income increased to HK$9,133,000 (2013: HK$5,708,000) as fees arisen from placement and underwriting activities continue to rise. Margin loan book at the end of the Period grew to HK$801,891,000 (31 March 2014: HK$678,234,000) and was well supported by banking facilities and fund raising exercise earlier this year.
Corporate finance and advisory services revenue for the Period amounted to HK$30,554,000 (2013: HK$21,538,000). Deal flow continues to be strong. Of 25 transactions completed during the Period, 3 (2013: 2) were IPOs, 22 (2013:13) were corporate advisory and M&A mandates. We expect further growth in the coming year as the regulatory environment tightens and fewer players are active in the market.
Revenue from management and performance fees from asset management division for the Period decreased to HK$10,652,000 (2013: HK$17,205,000), compared to last year as a result of reduced performance fee contributions from the funds. Nevertheless, total assets under management ("AUM") in all funds increased and stood at over US$117,517,000 (31 March 2014: US$105,139,000) at the end of the Period. The growth in AUM is a testament to the track record the funds has achieved.
Meanwhile, Quamnet's revenue was adjusted 4% to HK$9,614,000 (2013: HK$10,010,000). However, net contribution improved because of reduced costs and offering of better margin products. Much effort is now being dedicated to promoting service to the Mainland China market in light of the Shanghai-Hong Kong Stock Connect program.
Mr Bernard POULIOT, the Chairman of Quam concluded, "With the launch of Shanghai-Hong Kong Stock Connect, Quam is well positioned to capture the benefits from China's opening up its equity capital markets and assist more clients to meet their objectives. We will continue to enhance our product and service offerings in all units, capturing attractive business from the rapidly increasing capital flows and M&A activities by Chinese companies. In addition, we are excited to see that our brokerage arm Quam Securities Company Limited became the first Hong Kong Trading Member in derivatives market in Singapore Exchange, strengthening our ongoing efforts to grow our business in China and beyond."
Contact:
Quam IR
Ms Jane Chan Tel: (852) 2217 2906 E-mail: jane.chan@quamgroup.com
Ms Alice Cheung Tel: (852) 2217 2911 E-mail: alice.cheung@quamgroup.com
Topic: Press release summary
Source: Quam Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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