Choo Chiang Holdings (42E) H1 2023 earnings summary

Executive summary

• HY2023 revenue rose 6.5% YoY to $43.746m; profit after tax increased 29.4% to $5.174m, with gross margin improving to 29.7%.

• Higher selling prices and construction-sector demand supported Distribution Business revenue, while lower sourcing costs lifted its gross margin.

Financial highlights

• Revenue was $43.746m, up 6.5% YoY; cost of sales rose 2.8% to $30.761m and gross profit grew 16.4% to $12.985m.

• Profit before tax increased 30.5% YoY to $6.252m; income tax expense rose 36.1% to $1.078m; profit after tax rose 29.4% to $5.174m.

• Other operating income increased 189.8% to $623,000, driven by interest income, government grants and foreign-exchange gains; administrative and selling expenses rose 11.7% to $6.374m.

Outlook and guidance

• Current plans include continuing direct electrical and lighting solutions for Singapore developments and projects under the CCM brand, subject to market conditions and suitable locations.

• Plans include broadening products under the CCM and CRM brands and pursuing business opportunities to support revenue and profit growth.