Ever Glory United (ZKX) H2 2023 earnings summary

Executive summary

• FY2023 marked the first full year of operations as a listed issuer; M&E engineering growth supported profit and positive operating cash flow.

• Property development was newly established and made no material contribution to FY2023 revenue or profit.

Financial highlights

• Revenue rose 69.7% YoY to S$47.478m; higher project volume and higher-margin M&E work drove growth.

• Gross profit increased to S$10.954m from S$2.890m; profit before tax reached S$8.589m and net income rose to S$6.831m from S$1.767m.

• FY2023 included S$1.268m of one-off IPO expenses; excluding this item, reported pretax profit was S$8.589m.

• Operating cash flow was S$5.966m; cash and cash equivalents ended the year at S$5.156m, up from S$0.498m.

• Basic and diluted EPS was 4.35 cents vs 1.35 cents in FY2022.

Outlook and guidance

• M&E order book stood at S$118m at 31 Dec 2023, including the share of a joint arrangement; it is expected to be recognised over several years, not as FY2024 revenue guidance.

• Ongoing tenders are being pursued to replenish the order book; execution costs will be monitored amid inflationary pressure.

• A 20-unit freehold Geylang residential project is scheduled for TOP at end-2028.