Gallant Venture (5IG) H1 2023 earnings summary

Executive summary

• Revenue rose 16% YoY to S$87.9m, supported by higher industrial-park occupancy and a strong resort recovery as regional travel resumed.

• Profit attributable to owners was S$0.8m, versus a S$16.8m loss in 1H 2022; basic EPS was 0.015 cents versus a loss of 0.308 cents.

Financial highlights

• Gross profit increased to S$32.2m from S$21.5m; cost of sales rose to S$55.7m from S$54.2m.

• Other income was S$6.0m versus S$6.5m of expenses, mainly reflecting an unrealised FX gain of S$4.4m versus a S$9.0m loss in 1H 2022.

• Share of associate profits increased to S$13.4m from S$8.0m; finance costs rose to S$17.6m from S$10.7m amid higher external borrowing rates.

• Operating cash flow was S$16.3m, versus S$2.5m used in 1H 2022; cash and equivalents were S$110.4m at 30 June 2023, down from S$127.8m at 31 December 2022.

Outlook and guidance

• Industrial demand is expected to sustain growth in lettable space and rental yield; ongoing Batamindo construction is expected to add ~70,800 sqm by end-2023 and 85,000 sqm by end-2024.

• Higher industrial activity is expected to support utilities; tourism recovery is expected to benefit from increased Chinese international flights and pent-up travel demand.