HG Metal Manufacturing (BTG) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 20% YoY to S$87.5m, as sales volume grew 35%, partly offset by an 11% decline in average selling prices amid falling steel prices.

• Net profit was S$3.6m versus S$3.4m in H1 2024; continuing-operations profit after tax was S$3.6m versus S$3.7m.

• Excluding foreign-exchange gains and losses, net profit after tax was S$4.8m versus S$3.0m in H1 2024.

Financial highlights

• Gross profit increased to S$11.0m from S$9.9m; gross margin eased to 12.6% from 13.6%.

• Profit before tax from continuing operations was S$4.3m, down 3% YoY; income tax expense was S$0.7m versus S$0.7m.

• Other operating expenses rose to S$2.7m from S$1.6m, including S$1.2m of foreign-exchange and forward-contract losses; net derivative fair-value loss was S$962k versus a S$312k gain.

• Finance costs decreased 23% YoY to S$254k, mainly on lower trade-financing use and repayment of bank loans.

Outlook and guidance

• Singapore construction activity and infrastructure projects support demand prospects; BCA forecast 2025 construction contracts of S$47–53bn, above 2024 levels.

• To protect margins, priorities include just-in-time purchasing, faster inventory turnover, operational efficiencies and cost optimization.