GC Construction Holdings (1489) H1 24/25 earnings summary

Executive summary

• H1 FY2024/25 revenue fell 6.2% YoY to HK$265.314m; gross profit dropped 90.2% to HK$2.883m and attributable net results swung to a HK$7.164m loss from a HK$16.614m profit.

• Backlog was HK$506.1m across 56 projects at 30 September 2024, down from HK$564.8m across 61 projects at 31 March 2024.

Financial highlights

• Revenue was HK$265.314m versus HK$282.839m; service costs rose to HK$262.431m from HK$253.551m.

• Gross profit fell to HK$2.883m from HK$29.288m; gross margin declined to 1.1% from 10.4%.

• Operating loss was HK$7.962m versus operating profit of HK$19.050m; attributable net loss was HK$7.164m versus profit of HK$16.614m.

• Basic and diluted EPS was a loss of HK0.7 cents versus earnings of HK1.7 cents; no interim dividend was recommended.

Outlook and guidance

• Pursuing renovation and Hong Kong fitting-out opportunities to diversify revenue and use existing resources amid the wet-trades downturn.

• Expanding into Southeast Asia through market research, risk assessment and partner selection; recently entered Cambodia and secured a construction project there.