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Highlights

  • Atlas Engineered Products posted a gross margin of 29.6% in Q3 2023, against the industry median of 23.8%.
  • Its operating margin and net margin also increased to 14.3% and 9.1%, respectively, in the September quarter.
  • AEP’s income before income tax dipped to CAD 1.8 million in the third quarter of 2023, as compared to CAD 4.2 million in pcp. 

Canada-based supplier of trusses and engineered wood products, Atlas Engineered Products Ltd (TSXV: AEP) is engaged in manufacturing trusses for commercial and residential buildings and delivering to its customers on Vancouver Island and the Lower Mainland. The company operates in the geographical segment located on Vancouver Island. The group generates revenue from the business segments of trusses, engineered wood products, freight and steel.

For the quarter ended September 30, 2023, Atlas Engineered posted a gross margin of 29.6%, against the industry median of 23.8%.. Its operating margin and net margin also increased to 14.3% and 9.1%, respectively, in the September quarter, beating the industry median of 11.0% and 6.8%, respectively.

Atlas Engineered registered lower revenue in the third quarter of 2023, due to stability in some material prices at a normal level which was lower than historical highs. Also, the company’s operating profit has dropped by 53.5%, primarily because of increase in administrative and office expenditures.

AEP’s income before income tax dipped to CAD 1.8 million in the third quarter of 2023, as compared to CAD 4.2 million in the previous corresponding period, following a fall in operating profit and increased interest expense.

Overall, the company reported a net income of CAD 1.3 million in Q3 2023, as compared to CAD 3.1 million in the previous corresponding period.

Top 10 Shareholders:

Around 18.68% of the total shareholding in the firm is held by its top ten shareholders. While Abassi (Mohammad Hadi) and Andreola owns maximum stake of ­­­10.59%, Gianpaolo Fabrisio is the second biggest shareholder with approximately 2.88% shareholding.

Stock Price Performance

AEP’s stock price has increased by 0.90% over the last one week. It has gained approximately 1.81% in the last one month. The stock’s 52-week high and low price stand at CAD 1.44 and CAD 0.80, respectively.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 23, 2024. The reference data in this report has been partly sourced from EODHD/Others.