Hafary Holdings (5VS) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 34.1% YoY to S$226.4m; profit after tax increased 30.9% to S$40.1m, while profit attributable to owners reached S$39.1m.

• Results included a S$7.5m fair-value gain from remeasuring the previously held MSPL interest; excluding associate and JV profit, recurring PBT was S$45.5m vs S$33.5m.

Financial highlights

• PBT increased 30.3% to S$49.0m; EBITDA was S$70.2m and EBITDA margin 31.0% vs 30.5% in FY2022.

• Gross profit margin, based on goods revenue and cost of sales excluding labour and overheads, was 46.0% vs 46.7%.

• Other income and gains rose 92.4% to S$13.4m, mainly reflecting the S$7.5m MSPL remeasurement gain and S$5.0m rental income.

Outlook and guidance

• Singapore construction demand is forecast at S$32b–S$38b in 2024, with public-sector demand expected to contribute 55%; 2024 Singapore GDP growth is projected at 1.0%–3.0%.

• Malaysia’s construction outlook is supported by multi-year infrastructure plans and the New Industrial Master Plan 2030; manufacturing expansion is positioned to capture opportunities in Malaysia and export markets.

• Cautious optimism is tempered by geopolitical tensions, persistent inflation, higher interest rates, supply-chain disruption, subdued demand and China’s economic challenges.

• The new Lavender Street showroom’s addition and alteration works were underway and expected to finish in 4Q2024.