Ever Glory United (ZKX) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 57.3% YoY to S$74.67m on more ongoing M&E projects; profit before tax increased 21.0% to S$10.39m and net profit rose 31.1% to S$8.96m.

• M&E engineering remained the growth driver; property investment and development contributed no revenue or profit in FY2024.

Financial highlights

• Revenue S$74.672m, up 57.3% YoY; gross profit S$11.161m, up 1.9%, as cost of sales grew 73.9% to S$63.511m.

• Net income S$8.955m, up 31.1% YoY; reported PBT S$10.394m, up 21.0%.

• Other income increased to S$1.838m, including a S$1.075m bargain-purchase gain from the Fire-Guard acquisition; FY2023 included S$1.268m of one-off listing expenses, absent in FY2024.

Outlook and guidance

• BCA forecast Singapore construction demand of S$47bn–S$53bn in 2025, following preliminary FY2024 demand of S$44.2bn; 2026–2029 demand is projected at S$39bn–S$46bn annually.

• Remaining construction performance obligations were S$101.154m at FY2024-end, with S$74.980m expected to be recognised in 2025, S$24.030m in 2026 and S$5.078m in 2027.

• Property projects include 20 freehold Geylang residential units targeting TOP in end-2028 and a 69-unit Mandai food factory targeting TOP in end-2027.

• Strategy includes pursuing property development and investment opportunities and acquisitions; an offer to acquire 100% of a target was subject to definitive agreements and due diligence.