Ever Glory United (ZKX) H1 2024 earnings summary

Executive summary

• H1 revenue rose 20.9% YoY to S$32.11m on more ongoing M&E engineering projects; profit after tax increased 4.4% to S$5.72m.

• Gross profit fell 18.6% to S$6.71m as higher-margin projects completed in FY2023; results included a S$0.80m bargain-purchase gain from the Fire-Guard acquisition.

Financial highlights

• Revenue was S$32.11m versus S$26.56m in H1 2023; gross profit was S$6.71m versus S$8.25m.

• Profit before tax was S$6.71m, up 2.5% YoY; net income was S$5.72m, up 4.4%.

• Other income rose to S$0.93m from S$0.30m, mainly reflecting the S$0.80m bargain-purchase gain, partly offset by lower maintenance-services income.

• G&A expenses increased 58.8% to S$1.36m, while other expenses decreased S$1.21m, primarily due to one-off listing expenses in H1 2023.

Outlook and guidance

• Ongoing tender activity is being pursued to build the order book and support sustainable revenue growth; costs will be monitored on existing projects.

• Further acquisitions or investments will be explored to enhance shareholder returns.

• An interim tax-exempt dividend of 0.50 Singapore cents per ordinary share was recommended, versus 1.5 cents for the prior-year period.