Choo Chiang Holdings (42E) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 3.9% to S$93.1m, led by higher distribution sales; net profit fell 19.3% to S$9.5m as prior-year property disposal gains and impairment reversals did not recur.

• Gross profit increased 2.1% to S$26.7m, while profit before tax declined 16.9% to S$11.5m.

Financial highlights

• Revenue was S$93.075m versus S$89.622m in FY2024; cost of sales rose 4.6% to S$66.381m.

• Net income was S$9.517m versus S$11.788m; basic and diluted EPS fell to 4.58 cents from 5.68 cents.

• Other operating income declined 67.2% to S$1.073m, mainly due to the absence of prior-year gains and impairment reversals; FY2025 included a gain on the Pioneer Point disposal.

• Administrative and selling expenses increased 1.4% to S$14.044m; other operating expenses rose 28.4% to S$2.135m, including higher bank charges and trade receivable loss allowance.

Outlook and guidance

• For FY2026, Singapore GDP growth forecast was revised by MTI to 2%–4%; moderating growth among key trading partners and US tariffs remain headwinds.

• Construction activity and public residential and civil engineering projects are expected to support demand for electrical products; prime logistics rents are projected to resume mild growth in 2026.

• Priorities include expanding CCM and CRM-branded product ranges and reviewing the property portfolio to improve diversification, asset allocation and returns.