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Highlights

  • In Q2 2023, Atlas Engineered Products Ltd. secured a gross margin of 30% , as compared to 28% in pcp.
  • Its operating profit declined by 61.7% because of higher administrative and office expenses.
  • AEP’s net income before tax declined to CAD 1.08 million in Q2 2023, from CAD 2.75 million in Q2 2022.

Canada-based Atlas Engineered Products Ltd (TSXV: AEP) is involved in making trusses for commercial and residential buildings for distribution across the Lower Mainland and Vancouver Island. The company’s business segments of engineered wood products, trusses, freight and steel are the main sources of revenue for AEP.

AEP has centered its focus on enhancing equipment utilization, operations, and technological advancements to improve the company’s performance. Furthermore, it is widening the product range across operating markets.

In Q2 2023, the company secured a gross margin of 30%, as compared to 28%in the previous corresponding period. This was primarily because of continued pricing assessments across all product lines.

The company’s revenue reduced in the reporting period, following slowdown in some areas across Canada due to the rising interest rates. Also, its operating profit declined by 61.7% because of higher administrative and office expenses. In the second quarter, AEP’s income before tax declined to CAD 1.08 million, from CAD 2.75 million in Q2 2022 because of decreased operating profit and increased interest expense. Overall, the company’ net income dipped to CAD 0.78 million, as compared to CAD 2.04 million in pcp.

Top 10 Shareholders

Approximately 18.86% of the total shareholding is held by its top ten shareholders. While Abassi (Mohammad Hadi) owns a maximum stake in the company at around ­­­10.60%, Andreola, Gianpaolo Fabrisio holds over 2.89% shares in the firm.

Stock Price Performance

AEP’s stock price rose by approximately 1.72% in the last 30 days, it has jumped around 12.87% over the past three months. The stock’s 52-week high and low price stand at CAD 1.44 and CAD 0.56, 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 October 24, 2023. The reference data in this report has been partly sourced from EODHD/Others.