HG Metal Manufacturing (BTG) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 10% YoY to S$73.1m; continuing operations swung to S$3.7m net profit from a S$2.7m loss, supported by stronger sales volume and gross margin.

• Total net profit was S$3.447m, including a S$264k after-tax loss from discontinued operations.

Financial highlights

• Revenue increased 10% YoY to S$73.107m as sales volume rose 27%; average selling price fell 13% in line with lower steel prices.

• Gross profit rose to S$9.911m from S$4.106m; gross margin expanded to 13.6% from 6.2%, aided by depletion of high-cost inventory.

• Continuing-operations PBT was S$4.437m versus a S$2.729m loss; continuing net profit was S$3.711m versus a S$2.739m loss.

• Total comprehensive income was S$3.253m versus a S$3.863m loss; total basic EPS was 2.26 cents versus a 2.60-cent loss.

Outlook and guidance

• Construction steel continued efforts to win new contracts and retain existing ones; positive Singapore economic and construction-sector prospects underpin efforts to improve the sales order book.

• H1 results were in line with the financial results announcement made on 24 July 2024.