Ever Glory United (ZKX) H1 2025 earnings summary

Executive summary

• H1 revenue declined 11.1% YoY to S$28.56m and net profit fell 18.6% to S$4.66m; higher joint-venture earnings partly offset lower construction revenue and gross profit.

• The acquisition of Guthrie Engineering (S) Pte Ltd was completed on 1 July 2025, after the reporting period, adding a wholly owned M&E engineering business.

Financial highlights

• Revenue was S$28.56m, down 11.1% YoY, mainly as larger M&E projects were completed in FY2024.

• Gross profit fell 20.5% YoY to S$5.33m; gross margin decreased to 18.7% from 20.9% amid fewer higher-margin projects.

• Profit before tax declined 19.6% to S$5.40m and net profit decreased 18.6% to S$4.66m; basic and diluted EPS was 1.34 cents vs 1.69 cents.

• Other income was S$0.36m vs S$0.93m, with the prior-year comparison including an S$0.80m bargain purchase gain; G&A rose to S$1.92m from S$1.36m.

• Share of JV results increased to S$1.84m from S$0.49m, mainly on higher revenue from a project due for completion in 2025.

Outlook and guidance

• Cautiously optimistic on construction prospects; strategic tendering and cost control remain priorities as inflation pressures materials and manpower costs.

• GE integration is expected to improve project management and tendering, strengthen bidding for larger projects, and support public- and private-sector engineering growth.

• Two joint property developments are progressing as expected: a 20-unit Geylang residential project targeting TOP in end-2028 and a 69-unit Mandai food factory targeting TOP in end-2027.