Chasen Holdings (5NV) H1 2024 earnings summary

Executive summary

• H1 FY2024 revenue fell 7% YoY to S$75.104m, while gross profit rose 8% to S$14.480m; profit before tax was broadly stable at S$2.105m.

• Net profit after tax declined 31% to S$816,000; profit attributable to equity holders was S$0.4m, down 8% YoY.

• 3PL growth helped offset lower sales in Specialist Relocation and Technical & Engineering.

Financial highlights

• Gross margin increased to 19.3% from 16.6%; higher finance costs and income tax partly offset improved gross profit.

• Finance expenses rose 61% to S$2.6m, mainly due to higher interest rates; income tax expense rose to S$1.3m on higher chargeable income.

• Operating cash flow increased to S$15.1m from S$6.6m, mainly reflecting working-capital movements and higher cash inflows.

Outlook and guidance

• Priorities include diversification, region-specific approaches, cost improvements, operational efficiency and higher-value customer delivery.

• Energy transition, solar installations and adoption of AI, EVs, IoT and autonomous mobility are expected to support long-term T&E demand.

• Recovery in PRC and Vietnam projects was expected as funding and construction issues normalize; semiconductor manufacturers’ turnaround forecasts could support activity.

• 3PL activity showed recovery, while external demand for T&E may take time to materialize as customers reassess supply chains; timely PRC policy support may help business confidence.