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| Friday, 27 November 2009, 10:58 HKT/SGT | |
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Source: Quam Limited | |
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HONG KONG, Nov 27, 2009 - (ACN Newswire) - Quam Limited ("Quam" or the "Group", Stock Code: 952.hk), a prominent Hong Kong-based financial services group, announced its unaudited interim results for the six months ended 30 September 2009 ("the Period").
During the Period, Quam reported a net profit of HK$15.7 million (2008: HK$1.1 million), up by 13.3 times, and a revenue of HK$148.8 million (2008: HK$156.9 million). The Group's dramatic improvement in profitability was attributable to the securities and futures business that continued to perform, dividend income from Quam's investment portfolio and the market sentiment recovery from the global financial crisis. Basic earnings per share were HK2.03 cents (2008: HK0.14 cent).
The Group's Board of Directors resolved to declare an interim dividend of HK1.00 cent (2008: HK0.50 cent) per share for the six months ended 30 September 2009.
Securities and futures brokerage continued to be the most important revenue driver to the Group. During the Period, securities and futures dealing commissions recorded a significant increase of 9% to HK$117.0 million (2008: HK$107.3 million) and were driven by the improved market sentiment and increased activity in futures dealing due to volatility in certain futures products and commodities. ECM placement and underwriting fee income was HK$0.1 million (2008: HK$9.5 million), which was affected by the market sentiment. The securities margin loans at the end of the Period was down to HK$88.4 million (31 March 2009: HK$94.6 million), reflecting the cautious approach taken by clients.
* for identification purpose only
Corporate finance and advisory services revenue for the Period (including inter-company services) was HK$11.7 million (2008: HK$13.2 million). During the Period, the advisory team of this division had expanded and resulted in additional mandates. It helped to mitigate the impact of difficult M&A environment. With signs of increased investment activity recently, the Group is confident on the performance of its M&A component in the second half of the year.
Due to the strategic closure of Opportunity Fund in July, redemptions and the absence of performance fee, revenue generated from asset management was adjusted to HK$4.5 million during the Period (2008: HK$6.4 million). The Quam Greater China Fund's assets under management (AUM) now stand at over US$50.0 million while a performance fee is expected in the third quarter. A fund of funds, the Quam Multi-Strategy Fund, was newly launched in April 2009 with AUM currently standing at US$12.2 million. This division focused on developing private equity in the second tier cities of China with local partners and it formed a joint venture management company with an investment arm of the Suzhou government.
Revenue generated from investment website and Quam IR was HK$10.5 million (2008: HK$12.5 million). In addition to iFeng.com, Hexun.com and Sina.com, QQ.com has been added as the China content distribution partnership of Quamnet. Quamnet has also launched two new products, including a daily market trading strategies video service featuring Alex Wong and a foreign currency trading advice service from Patrick Wong. Recently, Quamnet held a large-scale investment seminar, featuring Tony Measor, Vincent Lam, Alex Wong and other investment veterans. There were about 1,000 participants while encouraging response was drawn at the event.
The performance of Quam's investment portfolio was encouraging during the Period and two dividend payments of a total of HK$11.0 million were received from Seamico Securities Public Company Limited ("Seamico") in Thailand. Its brokerage business is now Thailand's second largest brokerage in terms of market share after a merger which took place in May. The operating result of McMillen Advantage Capital Limited in Dubai had improved while Capital Partners Securities Co., Ltd. in Japan recorded positive earnings so far this year.
As at 30 September 2009, Quam stood at a strong financial position with cash and short term deposits of approximately HK$123.8 million (2008: HK$125.2 million).
Mr Bernard Pouliot, the Chairman of Quam, said, "Given the economy is improving with influx of hot money to Asian markets, we expect more mandates and a gradual increase of AUM in the second half of the year. Having said that, our strategy is to broaden the range of the Group's products and services, particularly in the asset management, brokerage business and private equity fronts. In addition to our existing presence in Shenyang, Shanghai, Shenzhen and Ningbo, new offices in Chengdu and Xiamen will be added soon. We also look to further expand our footprint in Taiwan, as part of our Greater China strategy."
Mr Pouliot has been appointed as the Chairman of Global Alliance Partners ("GAP"). He continued, "It is my honour to take the lead in GAP. Starting from 2008, GAP has continued to collaborate on deal flow, still the members work more closely during the Period. GAP's network currently includes partners in Hong Kong, Vietnam, Thailand, UAE, Japan and USA (New York), aiming to add new partners in the coming year. Leveraging on our expertise and wide range of quality investment products in different markets, Quam is poised to be a leading regional financial services institution."
Unaudited Financial Highlights(for the six months ended 30 September)
(HK$ million) 2009 2008 Change
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Revenue 148.8 156.9 -5.2%
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Profit attributable to
equity holders ofcompany 15.7 1.1 13.3x
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Basic earnings / share (cents) 2.03 0.14 13.5x
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Interim dividend / share (cents) 1.00 0.50 1x
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Contact:
Quam IR
Ms Anita Wan
Tel: +852-2217-2687
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: +852-217-2680
E-mail: sharon.au@quamgroup.com
Ms Venus Lam
Tel: +852-2217-2909
E-mail: venus.lam@quamgroup.com
Topic: Press release summary
Source: Quam Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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