Hiap Hoe (5JK) H1 2023 earnings summary

Executive summary

• H1 2023 revenue was $65.1m, up 33.6% YoY; net profit was $0.5m versus a $2.3m loss in H1 2022.

• Profit before tax was $1.7m versus a $3.6m loss; results included a $5.5m FX loss and $17.9m finance cost.

Financial highlights

• Revenue rose from $48.7m to $65.1m; other income was $16.4m, including a $13.2m gain on disposal of two Skyline 360° units.

• Net profit attributable to owners was $507k versus a $2.244m loss; basic and diluted EPS were 0.11 cents versus a loss of 0.48 cents.

• Fair-value changes in financial instruments were a $1.179m gain versus a $12.619m loss; finance cost rose 170.7% to $17.882m.

• Operating cash flow was $20.0m versus $14.8m; investing cash flow was $11.5m, while financing cash outflow was $25.7m.

Outlook and guidance

• Hotel income is expected to be affected by closure of the two Singapore hotels from July for rebranding refurbishment; Aloft Singapore Novena was expected to fully open in Q4 2023.

• Financial performance over the next 12 months is expected to face higher finance costs from rising rates and additional borrowings for hotel refurbishment.

• Rental operations will target improved yields and occupancy; sufficient banking facilities and liquidity were cited for near-term obligations and operating needs.