Hafary Holdings (5VS) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 16.2% YoY to $263.1m, while profit after tax fell 28.4% to $28.7m amid lower gross margin, higher expenses and financing costs.

• Manufacturing’s ramp-up in Malaysia drove top-line growth, offsetting softer General and Project revenue; the FY2024 dividend totaled 2.75 Singapore cents per share.

Financial highlights

• Revenue was $263.1m, up 16.2% YoY; gross profit margin was 40.3%, down from 45.5%.

• Profit before tax declined 24.6% to $36.9m; net profit fell 28.4% to $28.7m and profit attributable to owners fell 29.5% to $27.6m.

• EBITDA was $65.4m versus $70.2m; EBITDA margin declined to 24.9% from 31.0%.

• Operating cash flow was $22.6m versus $50.4m; cash and cash equivalents were $22.5m at year-end, compared with $17.9m.

Outlook and guidance

• Singapore construction demand is forecast at $47bn–$53bn in 2025, with annual demand of $39bn–$46bn projected for 2026–2029.

• Malaysia’s economy is projected to grow 4.8% in 2025; infrastructure projects and the Johor-Singapore SEZ are expected to support property and construction demand.

• Priorities include scaling Malaysian production and distribution, improving operational efficiencies and pursuing growth opportunities across Southeast Asia.