Hiap Seng Industries (1L2) H1 2025 earnings summary

Executive summary

• HY2026 revenue fell 13.0% YoY to S$11.0m as construction and maintenance activity declined; profit before tax was S$1.6m, down S$2.8m YoY.

• Excluding the S$2.2m YoY decrease in other gains, operational profit before tax declined S$0.6m; prior-period gains included a S$1.2m disposal gain.

Financial highlights

• Gross profit fell 25.1% YoY to S$2.684m; gross margin declined to 24.4% from 28.4%.

• Operating profit was S$1.644m, down 63.1% YoY; net profit was S$1.273m, down 68.6%.

• Other income edged up 4.8% to S$542k; administrative costs declined 12.6% to S$1.648m, mainly on lower professional fees, medical expenses and utilities.

• Other net gains fell to S$66k from S$2.245m, mainly reflecting lower foreign-exchange gains and no repeat of the prior-period disposal gain.

Outlook and guidance

• Competitive conditions, tighter foreign-workforce policies and persistently high dormitory costs remain pressures; economic and geopolitical uncertainty may affect Singapore and clients’ operating and capital-spending plans.

• Priorities are targeted cost mitigation, competitive client value and selective development, investment and diversification aligned with long-term profitability and sustainability.