The Hong Kong-listed container manufacturer Singamas Container Holdings returned to the black in 2020 on heightened container demand and is expecting demand for boxes to continue throughout this year.
[s2If is_user_logged_in()]Singamas believes the strong container demand will continue into 2021, with container usage becoming more widespread across various sectors. Additionally, the group will continue to diversify its products and customer base, focusing on renewable energy, environmental protection and medical applications, said Singamas, company chairman and CEO Teo Siong Seng.
Singamas, a subsidiary of Singapore liner operator Pacific International Lines, achieved a US$4.75 million net profit in 2020, recovering from a net loss of US$110.8 million in 2019.
Calling 2020 “truly transformative” for Singamas, Teo, concurrently PIL’s executive chairman, said the Chinese economy recovered relatively quickly from the Covid-19 outbreak, and Singamas strove to resume container production as quickly as possible to satisfy strong demand.
Teo recounted, “This demand increased considerably from mid-2020 onwards, owing to port congestion in numerous countries around the world,” he added, “With a large number of containers held at overseas ports, domestic demand for new boxes increased significantly, and has continued to date.”
Stronger demand for dry containers, along with promising growth from specialised container businesses, including product diversification and a rise in demand for clean energy, modular housing, medical and health related products, resulted in a turnaround in H2 2020.
Container manufacturing contributed nearly 90% of Singamas’ revenue of US$274.31 million and the segment achieved a pre-tax profit of US$3 million, recovering from a pre-tax loss of US$99.62 million in 2019.
Teo said that Singamas’ specialised container business continues to improve, and its research and development team worked with experts from the Chinese Academy of Sciences and China Customs to develop a mobile polymerase chain reaction laboratory for Covid-19 testing.
Martina Li
Asia Correspondent
[/s2If]
[s2If !is_user_logged_in()]Please login or register to read the rest of the story[/s2If]
