Hong Fok Corporation (H30) H2 2024 earnings summary

Executive summary

• FY2024 revenue was $104.319m versus $110.601m in FY2023; profit attributable to owners fell to $23.744m from $88.068m, alongside a much smaller investment-property revaluation gain.

• The balance sheet remained resilient: net current assets were ~$103m, cash and cash equivalents ~$34m, net interest-bearing debt-to-equity 0.22 and NAV per share $3.61.

Financial highlights

• Profit before tax was $15.629m versus $99.073m; consolidated profit for the year was $14.190m versus $95.018m.

• Investment-property revaluation gain was $11.841m versus $87.110m; revenue was lower by approximately $6m YoY.

• Finance expense was $37.643m versus $38.555m; net finance expense was $35.077m versus $36.067m.

• Basic and diluted EPS were 3.70 cents versus 13.72 cents; proposed final tax-exempt dividend remained 1 cent per ordinary share.

• Net cash from operating activities was $50.070m versus $54.506m; cash and cash equivalents at year-end were $33.506m versus $63.481m.

Outlook and guidance

• FY2025 investment-property rental income is expected to remain stable; residential unit sales at Concourse Skyline are expected to continue contributing revenue.

• YOTEL Singapore Orchard Road will target operating efficiency, cost savings and guest satisfaction amid continued hotel-sector economic and operational challenges.

• Singapore office growth is expected to be modest; marketing and sustainability efforts will support tenant retention and leasing, amid high fit-out costs and hybrid work.

• Lower Singapore mortgage costs could improve residential affordability, while foreign-buyer demand is expected to remain muted under current Additional Buyer’s Stamp Duty levels.