Company overview

Asia Pacific Wire & Cable Corp supplies the cables used in power and infrastructure projects and the enameled wire bought by manufacturers of motors, transformers and other electrical components. Power cables bring in the most revenue, followed by enameled wire. Its operating subsidiaries sell to contractors, state-owned entities, manufacturers and dealers, with businesses in Thailand, China, Singapore and Australia.

In Singapore, the group also earns from supplying, delivering and installing power cables for transmission projects, subcontracting installation to local companies. SP Power Assets Ltd. has historically accounted for nearly all sales in this project-services business. Separately, one unnamed customer in the Rest of the World region supplies a substantial share of group revenue.

Demand depends on government and private investment in power, communications and industrial projects. Copper accounts for most production costs. The group tries to pass copper-price changes on to customers, but adjustments can take months, and fixed-price project contracts limit how quickly it can recover higher costs.

The parent is a holding company rather than a direct operator, so it relies on distributions from its subsidiaries to meet its own obligations. Subsidiary cash needs, lending terms and regulatory restrictions can limit those payments; Chinese rules also restrict dividend distributions and currency transfers out of China.