ISSP Earnings 1Q2022 (12 June 2022) | 02 August 2022
ISSP reported a significant turnover for its attributable earnings for both FY2021 and 1Q22 results Some of the highlighted result includes:
F2021-1Q22 Revenue: Significant YoY and QoQ Growth
For its FY2022, ISSP recorded a significant growth of 42.5% YoY. This Growth is attributed to significant sales percentage increase in products with higher margins such as Mechanical pipes (FY2020 12.7% Vs FY2021 15.2%), Black Pipes (FY2020 17.3% Vs FY2021 20.6%) and also decreased in sales in lower margin products (See Figure 2). It also recorded a significantly higher YoY growth for its 1Q2022 Revenue growth of 88% driven by high sales increase percentage for both domestic market (+89%) and export market (+88%).
FY2021-1Q22 Profits: 1Q22 Biggest 1Q earnings to date
Amid Rise in Cost In line with higher revenue, Worth to note that annual Gross/Operating/Net profits increased by 101%/131%/176.4% which is a significant leap from FY2021 earnings. As for QoQ Margins in 1Q22, there was a decline of -19% for its Gross profit whilst operating and net profit rose 29.4% and 197% respectively. Worth to note that 1Q22 is the biggest 1Q earning for ISSP to date, a remarkable leap for the company (See Figure 1).
Targets and Outlook for the company:
With Post Pandemic recovery and the awaited upcoming National Capital City projects (IKN). The company is targeting a sales growth of 30%.
We expect the IKN project will be a bullish sentiment for ISSP and Material, Construction companies alike (See Figure 3).
Neutral Rating, Awaiting further Improvement
As the previous report’s target have been achieved, given the current cash position of the company, We downgraded ISSP’s rating to NEUTRAL. We believe in coming periods the company will continue to strengthen it’s cash position for operating cash flow purposes.