HG Metal Manufacturing (BTG) investor relations material

Executive summary

• 1H2026 revenue declined 5% YoY to S$80.970m; gross profit rose 21.1% to S$13.806m as gross margin expanded to 17.1% from 13.3%.

• Net profit was S$6.015m, down from S$6.252m; PBT rose 2% to S$7.150m, while PBT excluding FX and currency-contract fair-value gains was S$6.8m versus S$4.8m.

• Strategic investments in low-carbon steel supply and Tuas capacity expansion support growth; near-term energy costs and macroeconomic uncertainty remain risks.

Financial highlights

• Revenue fell 5% to S$80.970m; sales volume declined 1% and average selling prices fell 4% amid lower steel prices.

• Gross profit rose to S$13.806m from S$11.372m, with gross margin increasing to 17.1% from 13.3%, mainly on lower average material costs.

• Other operating income fell 58% to S$1.252m from S$2.950m, mainly on lower FX and forward-contract gains and interest income; one-off insurance compensation partly offset the decline.

• PBT rose 2% to S$7.150m; net profit fell to S$6.015m from S$6.252m as income tax expense increased to S$1.135m from S$0.791m.

• Selling and distribution costs declined 8% to S$0.830m; administrative expenses rose 11% to S$4.757m and other operating expenses rose 20% to S$2.159m.

Outlook and guidance

• Existing project pipelines are expected to support construction activity, while a softer macroeconomic environment may weigh on new project awards.

• Eden Flame’s Pasir Gudang low-carbon EAF steel facility is targeted to begin operations by end-Q3 2026, with planned annual capacity of ~500,000 tonnes.

• Near-term energy-cost increases are expected to pressure margins and profitability; priorities include operating efficiency, sustainable products and capacity building.