Hoe Leong Corporation (H20) H2 2024 earnings summary

Executive summary

• FY2024 marked a turnaround after two years of declining sales: revenue rose 10.0% to $44.010 million and profit after tax reached $727,000.

• Higher-margin new-stock sales and lower sales of older, slow-moving inventory lifted gross margin to 21.8% from 16.5%.

• Operating cash flow returned to positive territory at $1.628 million, compared with $1.397 million used in FY2023.

Financial highlights

• Revenue was $44.010 million, up from $40.011 million; gross profit was $9.596 million versus $6.614 million.

• Operating activities generated $1.163 million, compared with $1.011 million in FY2023; profit before tax was $597,000 versus $457,000.

• Net income attributable to owners was $727,000, up from $250,000; income tax was a $130,000 credit versus a $207,000 expense.

• Net impairment reversal fell to $300,000 from $3.250 million; FY2024 included a $596,000 PPE impairment reversal and $602,000 trade-receivable impairment allowance.

• Net foreign-exchange gain was $423,000 versus a $241,000 loss; finance costs were $566,000 versus $554,000.

Outlook and guidance

• Australia is expected to grow 10%–15% in 2025; FY2024 Australian revenue grew 21% excluding exchange-rate impacts.

• For 2025–2026, the Singapore sales office aims to develop additional customers each generating over $500,000 in annual sales.

• Market diversification plans include expansion into Sulawesi and broader international reach to reduce reliance on current markets.

• The Clementi warehouse is planned to close by Q2 2025, shifting to direct factory-to-client delivery under an asset-light model.