Hoe Leong Corporation (H20) H1 2024 earnings summary

Executive summary

• 1H 2024 revenue increased 10.5% YoY to $20.641m; net profit was $862k versus a $720k loss in 1H 2023.

• Gross profit rose to $4.952m, with gross margin improving to 24.0% from 11.8%, helped by a lower proportion of old, slow-moving inventory sold.

Financial highlights

• Operating results were $1.104m versus a $386k loss; profit before tax was $815k versus a $666k loss.

• Other income rose to $582k, including a $444k foreign-exchange gain; finance costs were $289k versus $280k.

• Net reversal of impairment losses fell to $165k from $2.062m, mainly reflecting a smaller inventory allowance reversal.

• Operating cash flow was a $232k outflow; investing cash flow was a $173k outflow and financing cash flow a $695k outflow.

• Cash and cash equivalents ended at $1.891m, down $1.132m during 1H 2024.

Outlook and guidance

• Challenging conditions persist in certain markets; plans include strengthening selected emerging and developed markets while taking a prudent stance amid geopolitical uncertainty.

• Cost management is intended to strengthen liquidity; calibrated investment is planned to enhance existing operating capabilities.