Gallant Venture (5IG) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose to S$93.3m from S$87.9m, but the period swung to a S$29.0m loss attributable to owners, mainly amid foreign-exchange losses and sharply lower associate earnings.

• Operating cash flow was negative S$22.8m; investing outflow was S$49.2m, while financing inflow of S$63.3m supported cash and cash equivalents of S$81.8m at period-end.

Financial highlights

• Revenue increased 6.0% YoY to S$93.275m; cost of sales rose to S$59.184m and gross profit to S$34.091m, with cost of sales/revenue ratio at 0.63, comparable YoY.

• Other expenses were S$10.516m versus S$6.047m other income in H1 2023, mainly reflecting a S$12.422m FX loss versus a S$4.390m FX gain.

• Associate results fell to S$0.123m from S$13.385m; finance costs increased to S$19.146m from S$17.591m, and loss after tax was S$28.961m versus profit of S$0.685m.

• Loss attributable to owners was S$28.994m versus profit of S$0.803m; basic and diluted loss per share were both 0.531 cents, compared with earnings per share of 0.015 and 0.014 cents.

Outlook and guidance

• Robust industrial-space demand is expected to sustain industrial parks performance through growth in lettable space and rental yield; 116,400 sqm of new space is due for completion and tenant transfer in 2024, with 5,000 sqm projected for 2025.

• Strong Bintan Resort tourist arrivals and activity are expected to continue in 2024, with full recovery of arrivals expected by year-end, supported by pent-up demand, increased air connectivity and Asia-Pacific recovery.