Gallant Venture (5IG) H2 2023 earnings summary

Executive summary

• FY2023 revenue and EBITDA rose, but attributable loss widened as financing costs increased and associate earnings declined.

• Industrial parks, utilities and resort operations improved; property development remained loss-making and recorded no land sales.

• Priorities include expanding industrial capacity, deploying solar power, supporting tourism recovery and managing liquidity and capital structure.

Financial highlights

• Revenue rose 9.5% to S$182.7m; gross profit increased to S$67.5m from S$55.3m, while EBITDA grew to S$68.0m from S$56.1m.

• Net loss attributable to owners widened to S$14.8m from S$13.6m; basic and diluted loss per share was 0.27 cents versus 0.25 cents.

• Other income included an S$11.3m FX gain, versus an S$4.6m FX loss in FY2022, largely from translating USD liabilities after the USD depreciated against the Singapore dollar.

• Share of associate profit fell to S$7.8m from S$19.1m, mainly on lower PT IMAS contribution; FY2023 net loss also reflected higher finance costs of S$37.5m versus S$27.3m.

Outlook and guidance

• Management expects higher FY2024 industrial parks revenue as factories delivered in 2023 contribute for a full year; 116,400 sqm of new BIP factories are scheduled for handover in FY2024.

• Tourist arrivals are targeted to reach pre-pandemic levels by end-2024; new resort hotels are slated to open in 2024, with Bintan International Airport expected to operate in 2026.

• Solar installations are planned across Batam and Bintan, with the first 7.4 MWp BIP rooftop phase expected to start operating in 3Q2024 and further projects scheduled through 2028.

• Management expects Indonesian economic growth to support operations in 2024–2025 and anticipates improved BOMC contributions in 2024 as delayed projects complete.