Years of hard work seem to be paying off for local-listed Accrelist. After taking over the company (formerly WE Holdings) in 2013, the current executive Chairman and Managing Director Mr. Terence Tea has since made strides in the restructuring of the business and that of its subsidiary and crown jewel, Jubilee Industries Holdings (Jubilee).
After a lengthy restructuring period, today’s Jubilee is no longer just an electronic component distributor. Including its stakes in Malaysia’s EG Industries, Jubilee has evolved into an integrated electronics manufacturing services (EMS) provider, offering the full chain of services from plastic injection moulding, mechanical design and fabrication as well as assembly and distribution.
Jubilee itself has turned around in financial performance and earnings are growing rapidly. In the latest FY19, Jubilee’s net profit more than tripled to $3.3 million on revenue of $163.7 million, despite the semiconductor downturn. Accordingly, management has addressed that this was mainly achieved through greater focus on higher margin product mix.
While Jubilee awaits the recovery of the semiconductor industry, focus in the short-term would be on the ramp up of utilisation in its mechanical business unit (MBU).
Technological advancement is the undercurrent driving the global demand for precision tooling processes and equipment and Jubilee is poised to ride on this trend. Following the acquisition of Honfoong Plastics Industries, its fleet of precision tooling machines has quadrupled to 118. With the enlarged scale, the management has now turned its eyes towards the higher-margin medical and automotive industries.
Meanwhile, Accrelist dabbles in more exciting ventures of medical aesthetics and artificial intelligence. The two business units are namely A.M. Aesthetics (Accrelist Medical Aesthetics) and Accrelist A.I. Tech.
After taking over Refresh Laser Clinic Chain and renaming it to A.M. Aesthetics, store count has expanded from mere four outlets to five outlets, with the latest outlet just recently opened at Clementi Mall. The group plans to set up four to eight more outlets in Singapore and Malaysia in the foreseeable future. In addition, Accrelist is also exploring opportunities within the sector such as securing exclusive distributorship of injectable fillers and developing own in-house products.
On the other hand, A.I. Tech is set up primarily to develop products and solution utilising future technology. With facial recognition at its core, Accrelist plans to roll out applications that address “fundamental manpower challenges faced by local services sector and enhance service delivery”.
Further integrating with a smart and secure cloud-based system, Accrelist believes that the technology can provide valuable data on high value customers and their entire customer journey.
In terms of financials, the group broke even, with small net profit of $0.1 million in FY19 compared to a net loss of $0.3 million a year ago. On a pre-tax level though, Accrelist also posted a profit of $1.2 million compared to a loss of $0.4 million during the same period.
Nonetheless, investors should pay attention to Accrelist as being the first and only listed company making foray into artificial intelligence, the group is setting the stage up for future growth.