Hock Lian Seng (J2T) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 6.0% YoY to $99.8m, while profit after tax rose 128.8% to $20.4m, driven by higher gross profit from civil engineering and property development.

• Results were in line with previously stated prospects; the civil engineering order book stood at ~$624m at 30 June 2024.

Financial highlights

• Gross profit rose to $21.3m from $6.8m; profit before tax increased 118.6% to $24.0m.

• Other income declined 13.3% to $6.4m, mainly reflecting the absence of the $1.1m arbitration legal-cost award recorded in H1 2023.

• Operating cash flow was $29.0m versus an outflow of $0.2m in H1 2023; cash and cash equivalents ended June at $156.1m.

• Total comprehensive income increased to $21.0m from $8.7m, including a $0.6m fair-value gain on FVOCI financial instruments.

Outlook and guidance

• Results were in line with the general prospect commentary previously shared for FY 2023.

• The CAG JV project was expected to complete in Q3 2024; the order book included mainly Aviation Park Station and Serangoon North Station projects.

• Shine @ TuasSouth had sold 50% and leased 46% of its units; interest in industrial building units had picked up since early 2023.

• Management planned to tender competitively for infrastructure projects and explore other opportunities to enhance shareholder value.