Hong Fok Corporation (H30) H1 2024 earnings summary

Executive summary

• H1 revenue was $44.6m, down 12% YoY, mainly from lower residential unit sales and reduced investment-property income amid lower occupancy.

• Profit for the period fell 57% to $2.7m; profit attributable to owners declined 47% to $3.6m.

• Total comprehensive income rose 88% to $16.5m, driven largely by foreign-currency translation gains.

Financial highlights

• Revenue was $44.575m versus $50.812m YoY; other income increased to $820k from $83k, mainly reflecting gains on debt-investment redemption.

• Profit before tax declined 61% to $3.112m from $8.069m; tax expense decreased to $364k from $1.745m.

• Net finance expense increased to $18.047m from $17.736m; finance income rose to $1.349m from $1.097m.

• Fair-value changes on FVTPL investments were a $781k loss versus a $1.475m gain YoY; development-property cost of sales fell 65% to $1.601m.

• Basic and diluted EPS were 0.57 cents, down from 1.07 cents YoY.

Outlook and guidance

• Commercial leasing demand is expected to remain subdued; targeted marketing efforts are planned, with rental income from investment properties expected to remain stable.

• Discussions with the YOTEL Singapore Orchard Road operator are underway on strategies to improve hotel performance.

• Singapore hotels anticipate a demand pickup from upcoming top-tier events, while the residential market remains slow under cooling measures and high interest rates.