Hor Kew Corporation (BBP) investor relations material

Executive summary

• H1 2026 revenue rose 71% YoY to $57.3m, driven mainly by higher delivery volumes of prefabricated building components; net profit increased to $8.8m from $4.3m.

• Gross profit rose to $17.8m, but gross margin fell to 31.0% from 46.4%, mainly due to lower margins in precast concrete.

Financial highlights

• Revenue was $57.3m versus $33.5m YoY; cost of sales rose to $39.5m from $18.0m as delivery volumes increased.

• Gross profit was $17.8m versus $15.6m; profit before tax increased 45% to $9.8m, and profit after tax rose to $8.8m from $4.3m.

• Other income increased to $2.6m from $1.6m, mainly on a $0.7m increase in rental income; G&A rose to $7.7m from $6.8m, mainly on higher staff costs.

• Finance costs rose to $1.3m from $0.8m as borrowings increased; net impairment loss on financial and contract assets fell to $2.0m from $3.1m on improved collections.

• Basic and diluted EPS were both 16.97 Singapore cents, up 103% YoY from 8.35 cents.

Outlook and guidance

• Singapore construction demand is expected to remain strong; tendering will target projects expected to yield higher margins while costs are managed.

• Actual results were in line with commentary in the prior full-year results announcement.