Fu Yu Corporation (F13) H1 2024 earnings summary

Executive summary

• 1H2024 revenue rose 78.0% YoY to S$126.713M; net profit was S$72k versus a S$3.854M loss in 1H2023.

• Supply chain management drove growth, while gross margin declined amid a change in revenue mix; higher orders and project inquiries supported expectations for stronger 2H momentum.

Financial highlights

• Gross profit increased to S$8.5M from S$6.4M; operating profit was S$836k versus an operating loss of S$3.767M, and PBT was S$333k versus a S$4.042M loss.

• Net profit was S$72k versus a S$3.854M loss; supply chain management earned S$0.6M, partly offset by a S$0.5M manufacturing loss.

• Adjusted for FX, PBT was a S$0.4M loss versus a S$4.5M loss in 1H2023.

• Selling and administrative expenses fell 19.4% to S$10.2M; finance costs rose to S$503k from S$275k.

Outlook and guidance

• Higher order volumes and new-project inquiries supported expectations for stronger business momentum in 2H2024.

• Initiatives to enhance manufacturing capabilities and expand the customer base were bearing early fruits; execution was to continue in the coming months.

• Higher-precision tooling projects, mainly for medical devices, were expected to increase; plans included ramping up Fu Yu Biomedical.