Choo Chiang Holdings (42E) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 3.9% to $91.006m and profit attributable to owners increased 16.9% to $10.541m, supported by higher distribution sales and gross margin.

• Forbes Asia 2023 named the business among its Best Under A Billion top 200; Brand Finance Singapore 100 ranking improved seven places to No. 91.

Financial highlights

• Revenue was $91.006m, up 3.9% YoY; gross profit rose 8.3% to $27.433m, with gross margin at 30.1% versus 28.9%.

• Profit before tax increased 17.8% to $12.848m; net profit attributable to owners reached $10.541m, up 16.9% YoY.

• Other operating income grew 136.4% to $1.038m, mainly from higher interest income, government grants and FX gains; administrative and selling expenses rose 5.9% to $13.774m.

• Cash and cash equivalents were $30.563m at year-end, up 31.3%; total assets increased 8.7% to $81.679m and equity rose 10.0% to $63.308m.

Outlook and guidance

• Singapore GDP growth is projected at 1.0%–3.0% in 2024; manufacturing and trade-related prospects are expected to improve alongside local electronics demand.

• Priorities include expanding CCM and CRM branded product ranges, continuing electrical and lighting solutions for Singapore projects, and reshuffling the property portfolio to pursue opportunities.

• Global electronics demand is projected to recover, while China’s 2024 growth is expected to remain sluggish; outlook remains exposed to downside risks.