Ever Glory United (ZKX) H1 2023 earnings summary

Executive summary

• 1H2023 revenue rose 163.3% YoY to S$26.56m and profit after tax increased to S$5.49m from S$0.63m, driven mainly by more ongoing projects and higher-margin work.

• Listed on SGX Catalist on 18 May 2023; the M&E engineering business operated mainly in Singapore.

Financial highlights

• Revenue increased to S$26.56m from S$10.09m; gross profit was S$8.25m versus S$1.00m, with gross profit margin reported up 21.17%.

• Profit before tax rose to S$6.55m from S$0.77m; income tax expense increased to S$1.06m from S$0.13m.

• Other income was S$0.30m; other expenses increased by S$1.21m, mainly from one-off listing expenses.

• Net cash generated from operating activities was S$2.08m, versus S$1.05m used in 1H2022; cash and cash equivalents reached S$5.22m at 30 June 2023.

Outlook and guidance

• Directors recommended a tax-exempt interim dividend of 1.5 Singapore cents per ordinary share; payment and entitlement dates to be announced later.

• Follow-up on ongoing tenders and cost monitoring during project execution remain priorities; pursuing new business opportunities and investments is also planned.