Wisynco Group Limited Reports Drop in Net Profit

• Wisynco Group Limited saw a 12.4% (or $217.93Mn) year over year reduction in unaudited net profit to $1.54Bn (EPS: $0.41) for the six months ended December 30, 2020.
• Depressed economic activity and shrinking wallets negatively affected revenues from some of the company’s higher-margin products, while it positively affected some of the lower margin products. The net effect was a $1.06Bn (or 6.2%) fall-off in revenues.
• However, the overall reduction in net profit was tempered by a 3.9% (or $423.94Mn) and 14.3% (or $507.20Mn) decline in direct costs and selling and distribution costs, respectively, as management effected measures to control costs.
• The company’s stock price has fallen by 1.84% since the start of the year, closing Thursday’s trading session at $16.53. At this price, the stock currently trades at a P/E of 24.0x earnings, which is below the Main Market Distribution & Manufacturing Sector Average of 28.0x.

(Source: Wisynco Financials)