Hafary Holdings (5VS) H1 2023 earnings summary

Executive summary

• HY2023 revenue rose 47.1% YoY to $104.8m; profit before tax increased 54.4% to $20.3m and net profit rose 48.9% to $16.1m.

• Stronger General and Project segment sales supported growth, alongside a gross margin increase to 46.7% from 45.2%.

Financial highlights

• Revenue was $104.8m vs $71.3m; cost of sales increased 43.0% to $55.8m as sales expanded.

• Profit before tax reached $20.3m vs $13.2m; excluding associate and joint-venture profits, recurring-activity PBT was $18.7m vs $11.5m.

• Net profit was $16.1m vs $10.8m; basic and diluted EPS rose to 3.66 cents from 2.41 cents.

• Operating cash flow increased to $24.9m from $6.0m; cash and cash equivalents ended June at $24.3m.

Segment performance

• General revenue grew 44.8% YoY to $67.5m, supported by active resale housing demand and buyers seeking to avoid BTO construction delays.

• Project revenue increased 51.4% to $37.3m as construction activity picked up, partly supported by relaxed border restrictions for migrant workers.

• Recurring EBITDA: General $22.6m, Project $5.8m, Manufacturing loss $2.4m and Others $2.1m; total was $28.4m vs $17.9m.

• Associate profit was $1.6m, broadly unchanged YoY; joint-venture profit declined to $20,000 from $100,000, affected by a China JV’s performance.