EnGro Corporation (S44) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 15.6% YoY to S$185.4m, led by construction demand in Singapore and Malaysia; net profit was S$0.2m after a S$4.7m one-time, non-cash impairment at a China GGBS JV.

• Profit attributable to owners was S$1.1m, versus a S$6.3m loss in FY2023; basic EPS was 0.92 cents versus a 5.34-cent loss.

Financial highlights

• Revenue increased to S$185.4m from S$160.4m; cement and building materials contributed S$175.0m, specialty polymer S$10.1m, and food and beverage S$0.3m.

• Gross profit was S$50.6m; operating profit was S$3.9m, versus an operating loss of S$0.4m in FY2023.

• Profit before tax was S$1.2m; net profit was S$0.2m, compared with a FY2023 net loss of S$5.6m.

• Other income was S$4.8m and net fair-value gains on financial assets were S$1.9m; share of associate and JV losses was S$3.3m.

Outlook and guidance

• FY2025 profitability is expected to be maintained, with cautious optimism supported by core business opportunities.

• Singapore construction demand is projected at S$47bn–S$53bn in 2025; medium-term demand is forecast at S$39bn–S$46bn annually for 2026–2029.

• Singapore PBFC supply for Changi T5 is expected to begin in mid-2025; the Pulau Punggol Timor batching plant commenced production in January 2025.

• Indonesia polymer growth plans include two-wheeler projects targeted for mass production in Q2 2025, with automation and local-content advantages supporting market expansion.

• China GGBS plans prioritize cost optimization, operational efficiency and higher-value products amid continuing market adjustment.