Hafary Holdings (5VS) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 11.2% YoY to S$116.6m, while net profit fell 36.9% to S$10.2m as gross margin compressed and costs increased.

• Profit before tax was S$13.7m; excluding associate and joint-venture profits, recurring PBT was S$12.7m versus S$18.8m a year earlier.

Financial highlights

• Revenue increased S$11.8m YoY to S$116.6m; cost of sales rose 23.0% to S$68.7m.

• Gross profit margin on goods sales was 41.1%, down from 46.7% in H1 2023.

• Employee benefits expense increased 7.0% to S$16.9m; other expenses rose 26.7% to S$9.5m, reflecting Malaysia operations and consolidation of Guangdong ITA Element.

• Finance costs increased 28.9% to S$5.8m, driven by floating-rate revisions and additional term loans and trust receipts for working capital.

Outlook and guidance

• Singapore construction demand is projected at S$32bn–S$38bn in 2024, with public-sector awards expected to drive demand; BCA projects S$31bn–S$38bn annually for 2025–2028.

• Malaysia’s property market outlook is described as stable with positive growth in 2024, supported by investment and infrastructure development.

• Global growth is projected at 2.6% in 2024 and 2.7% in 2025–26; elevated rates, inflation and geopolitical risks weigh on the outlook.