Hoe Leong Corporation (H20) investor relations material

Executive summary

• 1H 2026 revenue fell 11.9% YoY to $18.439m, while profit attributable to owners rose to $708k from $23k.

• Operating profit increased to $860k from $454k; outlook remains cautiously optimistic despite subdued demand risks and cost pressures.

Financial highlights

• Gross profit declined 15.3% to $4.790m; cost of sales fell 10.7% to $13.649m, broadly tracking lower revenue.

• Other income rose to $517k from $115k, mainly reflecting FX gains, scrap sales and government subsidies; other expenses fell to $725k from $1.523m.

• Profit before tax was $636k versus $165k; income tax was a $72k credit versus a $142k expense in 1H 2025.

• Finance costs declined 22.5% to $224k, mainly due to loan repayments.

Outlook and guidance

• New customers have been secured, but their revenue contribution is expected to scale up gradually over the coming year.

• Orders in the Middle East and certain Asian markets may remain subdued in 2H FY2026; cautious optimism applies, barring unforeseen circumstances.

• Planned actions include prudent procurement and cost management, pricing reviews, and customer and market diversification.