Q1 Profit Down at SOS

• For the three months ended March 31, 2020, Stationery and Office Supplies (SOS) Limited reported unaudited net profit of $43.80Mn (EPS:18¢), down 23.9% (or $13.73Mn) relative to the same period one year prior.
• The main contributor to this performance was an 11.4% (or $8.81Mn) increase in administrative and general expenses, and a 433.2% (or $1.51Mn) increase in FX losses.  In additon, for the period the company reported a $1.26Mn impairment loss on financial assets compared with a  $55k gain made in the prior year.
• The stock has fallen by 42.9% since the beginning of the calendar year. SOS closed Wednesday’s trading session at $6.30 and currently trades at a P/E of 12.9x earnings, which is below the Junior Market Distribution Sector Average of 17.3x earnings.

(Source: SOS Financials)