Hafary Holdings (5VS) investor relations material

Executive summary

• H1 revenue fell 10.5% YoY to $122.7m amid softer construction and residential renovation demand; profit before tax declined 21.9% to $13.5m and net profit fell 23.4% to $10.6m.

• Gross margin on goods sales improved to 43.4% from 40.0%; operating cash flow was $9.3m, while cash and cash equivalents closed at $21.2m.

Financial highlights

• Revenue was $122.729m, down 10.5% YoY; purchases and related costs fell 13.3% to $72.803m, while cost of sales decreased 15.5% to $69.5m.

• Profit before tax was $13.476m, down 21.9%; excluding associate and joint-venture earnings of $1.0m, recurring-activities PBT was $12.5m versus $16.8m in H1 2025.

• Net profit was $10.595m, down 23.4%; basic and diluted EPS declined to 2.37 cents from 3.04 cents.

• Total comprehensive income rose 2.4% to $12.067m, supported by a $1.472m foreign-currency translation gain versus a $2.041m loss a year earlier.

• Impairment losses increased to $2.3m from $0.6m, mainly from inventory impairment allowances; finance costs fell 17.8% to $4.6m.

Outlook and guidance

• Singapore construction demand is projected at S$47–53bn in 2026; construction output is projected at $43–46bn, with medium-term annual demand forecast at $39–46bn for 2027–2030.

• Malaysia’s 2026 GDP growth is forecast at 4%–5%, while inflation is projected at 1.5%–2.5%; domestic demand and multi-year investments are expected to support activity amid external headwinds.

• Global growth is projected to slow to 2.5% in 2026 from 2.9% in 2025; elevated geopolitical and commodity risks pose downside exposure, and supply-chain activity will be monitored closely.