Choo Chiang Holdings (42E) H1 2024 earnings summary

Executive summary

• HY2024 revenue fell 3.0% YoY to $42.423m and profit fell 6.1% to $4.858m, mainly reflecting lower electrical-products sales amid an industry slowdown.

• Rental income and other operating income rose, but did not offset softer distribution revenue and higher administrative and selling expenses.

Financial highlights

• Revenue was $42.423m, down 3.0% YoY; gross profit was $12.538m, down 3.4%, and profit before tax was $5.840m, down 6.6%.

• Profit after tax was $4.858m, down 6.1% YoY; basic and diluted EPS were both 2.34 Singapore cents versus 2.49 cents.

• Other operating income rose 26.0% to $785k, while administrative and selling expenses increased 3.5% to $6.596m; other operating expenses fell 10.4% to $833k.

• Cash and cash equivalents were $28.299m at 30 June 2024, down from $30.563m at 31 December 2023; total assets were $83.580m.

Outlook and guidance

• Current intention is to expand the Singapore retail network and extend direct electrical and lighting solutions for developments and projects through the CCM brand, subject to market conditions, suitable locations and other considerations.

• Plans include widening products under the CCM and CRM brands to reinforce market position; no quantified earnings guidance was stated.