Wolf Money(Pico Far East 1H 2021 result up 138%)

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Pico Far East had just reported first half profit of HKD 58m, an increase of 138% compare to HKD 24m last year. EPS came in at HKD 4.65c. The result is commendable given the challenges facing mice sector where hosting physical events had become difficult due to lockdown and social distancing. Greater China especially mainland China contribute to the recovery as more events are held in China post covid lockdown. Southeast Asia market continue to be weak due to covid 19 hampering recovery in physical events held. 




Greater China now account for over 60 percent in revenue. The management is cautiously optimistic with general recovery from covid 19 but they did warn of recovery been gradual. I estimate they will be doing a better second half due to bigger contracts fulfilment for Oman museum,Tokyo Olympic Games and Dubai Expo which happens to be the biggest contact win in their history since their participation in Expo from 1988. China mice sector recovery continues to hold amid margin decline. Southeast Asia market recovery is slow. Recovery is likely to start with Singapore with possibility of reintroduction of physical events in the 2nd half of 2021. No dividend was declared for first half of 2021 to conserve capital due to fluidity in covid 19 situation.


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All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for information only. Buyer beware,do you own due diligence.

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