Choo Chiang Holdings (42E) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 1.5% YoY to S$89.622m as lower distribution sales outweighed rental growth; profit before tax rose 7.5% to S$13.809m, supported by higher other operating income.

• Net profit attributable to owners increased 11.8% to S$11.788m; EPS rose to 5.68 cents from 5.08 cents.

• Recognised by Forbes Asia’s Best Under a Billion for a second consecutive year and retained a top-100 Singapore brand ranking for a fifth consecutive year.

Financial highlights

• Revenue S$89.622m, down 1.5% YoY; gross profit S$26.157m, down 4.7%, with gross margin at 29.2% versus 30.1%.

• Profit before tax rose 7.5% to S$13.809m; net profit attributable to owners rose 11.8% to S$11.788m.

• Other operating income increased 215.3% to S$3.273m, including property disposal gain, impairment reversals, lease modification gain and interest income.

• Cash and cash equivalents rose 13.4% to S$34.647m; total assets increased 8.5% to S$88.643m and equity rose 10.1% to S$69.697m.

Outlook and guidance

• Singapore GDP is projected to grow 1.0%–3.0% in 2025; manufacturing and trade-related services are expected to expand at a moderated pace, with electronics supported by semiconductor demand.

• Priorities include prudent operations, widening product ranges, developing CCM and CRM electrical and lighting solutions, and pursuing new business opportunities.

• Portfolio reshuffling will be assessed against property-market conditions and strategic objectives, aiming to diversify assets and improve returns while maintaining a measured approach.