Miyoshi warns of loss of major project and likely earnings hit

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Miyoshi’s wholly owned subsidiary Miyoshi Technologies Phils. has received a notice from a customer which is a major revenue contributor that it will delist its activity in the Philippines Economic Zone effective end-November, the company said in a filing to SGX Wednesday.

The project is being discontinued due to the customer’s move to consolidate its production line, the filing said.

A preliminary assessment indicates the discontinued project will impact around 18.4 percent of revenue from the subsidiary in the Philippines, the filing said.

In addition, the impact on the consolidated earnings per share for the group in the next financial year is estimated at 48.5 percent, while the impact on consolidated net tangible assets is projected at around 1.2 percent, Miyoshi said.

Miyoshi is a manufacturer, producing components for Japanese brands in the data storage, consumer electronics and automotive segments, according to the company website. The company’s services include precision stamping, laser welding, prototyping, metal finishing and automation, the website said, adding its manufacturing plants are located in the Philippines, Thailand, Malaysia, Singapore and China.