Hong Leong Asia (H22) H1 2025 earnings summary

Executive summary

• 1H 2025 revenue rose 25.7% YoY to S$2,828.96m; profit after tax increased 30.9% to S$121.2m.

• PATMI rose 13.1% to S$56.0m, or 21.2% excluding the prior-year S$3.3m associate-disposal gain; Powertrain Solutions drove growth while Building Materials revenue declined.

Financial highlights

• Profit from continuing operations increased 31.2% to S$121.2m; profit before tax from continuing operations rose 23.9% to S$149.2m.

• Gross profit increased 18.5% to S$427.5m, while gross margin narrowed to 15.1% from 16.0%.

• EPS was 7.49 cents versus 6.62 cents; basic EPS from continuing operations rose 13.4%.

• Finance costs fell 28.9% to S$12.8m, mainly due to lower interest rates and bank loan principal.

Outlook and guidance

• Barring unforeseen circumstances, satisfactory results are expected in 2025; priorities include growing order books, improving efficiency and managing costs.

• Yuchai is expanding MTU Yuchai Power Company capacity for data-centre demand and investing in clean heavy-duty gas engines and new-energy powertrains.

• BMU Singapore expects support from growing precast and ready-mix order books; Tasek anticipates stronger demand from infrastructure activity and the Johor-Singapore Special Economic Zone.