Hock Lian Seng (J2T) H2 2024 earnings summary

Executive summary

• FY2024 revenue declined 9.2% YoY to S$183.5m as the Changi Airport joint venture project neared completion; net profit rose to S$32.1m on stronger gross profit.

• Year-end cash and cash equivalents reached S$159.3m, while net assets were S$284.5m; a 1.8 Singapore cent per-share dividend was proposed, subject to shareholder approval.

Financial highlights

• Revenue was S$183.456m versus S$201.962m in FY2023; gross profit increased to S$30.367m from S$23.195m.

• Profit before tax rose to S$37.658m from S$30.886m; net profit was S$32.068m versus S$26.644m, including higher administrative costs and lower other income.

• Other income was S$14.526m versus S$14.950m; FY2023 included a S$1.091m arbitration legal-fee award, while FY2024 included a S$1.405m gain on disposal of property, plant and equipment.

• Net cash generated from operating activities was S$32.462m, compared with S$6.229m used in FY2023; year-end cash and short-term deposits were S$159.304m.

Outlook and guidance

• Civil Engineering order book stood at ~S$553m at 31 December 2024, mainly comprising Aviation Park and Serangoon North station contracts.

• BCA forecast Singapore construction demand of S$47bn–S$53bn in 2025 and S$39bn–S$46bn annually from 2026 to 2029.

• Priorities include executing existing projects, selectively tendering for infrastructure work, monetising remaining Shine @ TuasSouth units and evaluating new developments cautiously.

• Singapore economic growth was projected at 1.0%–3.0% for 2025; management highlighted global uncertainty and a moderating external-demand outlook.