HG Metal Manufacturing (BTG) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 5% YoY to S$157.9m; net profit after tax reached S$8.6m, reversing a S$1.8m loss in FY2023.

• Gross profit increased 73% to S$22.1m as gross margin expanded to 14.0%, supported by higher sales volume, lower weighted-average material costs and improved operating efficiency.

• Cash and cash equivalents reached S$55.4m at year-end, bolstered by stronger earnings and equity fundraising; strategic focus remains on Singapore construction and regional growth.

Financial highlights

• Revenue was S$157.867m versus S$149.755m in FY2023; sales volume rose 19% YoY, partly offset by lower average selling prices as global steel prices softened.

• Gross profit was S$22.072m versus S$12.787m; continuing-operations PBT rose to S$10.305m from S$0.145m, and continuing-operations PAT was S$8.841m versus S$0.453m.

• Total PAT was S$8.577m versus a S$1.771m loss; profit attributable to owners was S$6.314m, including discontinued-operation losses and the disposal-related intercompany debt waiver effects.

• Other operating income rose 77% to S$1.685m, including S$309k fair-value gains on derivatives and S$454k net foreign-exchange gains; finance costs fell to S$0.620m from S$0.987m.

• Operating cash flow was S$11.4m versus S$22.3m; higher receivables offset operating profits. Inventory fell to S$11.9m from S$24.2m, while trade and other receivables rose to S$61.4m.

Outlook and guidance

• FY2025 outlook is cautiously optimistic, with plans to lift production efficiency and capacity, improve procurement and inventory management, broaden customers, and pursue organic growth or acquisitions.

• BCA forecasts Singapore construction demand of S$47bn–S$53bn in 2025; projects include Changi Airport Terminal 5, Resorts World Sentosa, MRT and infrastructure developments.

• New projects, including Resorts World Sentosa, are expected to support revenue and profit once materialised in FY2025; Changi Airport Terminal 5 and other developments remain targets for pursuit.

• Singapore GDP growth is forecast at 1.0%–3.0% for 2025, tempering the positive construction outlook amid global trade and geopolitical uncertainty.