Hock Lian Seng (J2T) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 1.5% YoY to S$186.3m, while gross profit fell 50% to S$15.3m and net profit declined to S$17.3m on elevated project costs and lower other income.

• Civil engineering activity increased, led by Aviation Park and Serangoon North; property development revenue fell as fewer Shine @ TuasSouth units were sold.

• The civil engineering order book was about S$390m at 31 December 2025; execution remains exposed to rising costs and estimation uncertainty.

Financial highlights

• Revenue was S$186.3m versus S$183.5m in FY2024; gross profit was S$15.3m versus S$30.4m, mainly reflecting project cost pressures and the absence of FY2024 Changi JV final-account savings.

• Profit before tax fell to S$19.9m from S$37.7m; net profit was S$17.3m versus S$32.1m, and profit attributable to shareholders was S$17.0m versus S$32.0m.

• Other income decreased to S$11.1m from S$14.5m, reflecting lower interest and rental income and a lower disposal gain, partly offset by investment-security fair-value gains.

• Operating cash flow was an outflow of S$104.1m versus an inflow of S$32.5m, mainly due to the Pioneer Road land acquisition and higher contract assets and receivables.

Outlook and guidance

• Singapore construction demand is forecast at S$47b–S$53b in 2026 and S$39b–S$46b annually from 2027–2030, supported by airport, transport, healthcare, education and housing projects.

• The S$390m civil engineering order book mainly comprises Aviation Park and Serangoon North; disciplined project execution and selective bidding are priorities amid rising costs.

• Shine @ TuasSouth and Ark @ Gambas units will continue to be marketed; suitable joint ventures for new residential developments will also be explored.

• Singapore GDP growth is projected at 2.0%–4.0% in 2026; renewed tariff escalation or geopolitical tensions could weaken global markets and business sentiment.