Hong Leong Asia (H22) H2 2024 earnings summary

Executive summary

• FY2024 revenue grew 4.1% to S$4,249.4M; net profit after tax rose 27.0% to S$152.3M and PATMI increased 35.3% to S$87.8M.

• Growth in Powertrain Solutions and Building Materials supported full-year results, while 2H segment results were lower and Corporate and Others revenue declined.

Financial highlights

• FY2024 revenue was S$4,249.4M, versus S$4,081.5M in FY2023; 2H revenue was S$1,998M, down 0.4%.

• Net profit after tax rose to S$152.3M from S$119.9M; excluding discontinued operations, it increased 26.4% to S$151.8M.

• PATMI rose 35.3% to S$87.8M from S$64.9M; excluding disposal gains in both years, growth was 45.2%.

• FY2024 EPS increased 35.3% to 11.74 cents; 2H EPS rose 12.2% to 5.11 cents.

• 2H PATMI rose 12.2% to S$38.2M; dividend per share doubled to S$0.04 for FY2024.

Outlook and guidance

• Singapore construction contract awards are forecast at S$47B–S$53B in 2025, versus S$44.2B in 2024.

• Businesses are expected to deliver satisfactory results in 2025, barring unforeseen circumstances; priorities include building order books, operational efficiency and cost management.

• Yuchai is pursuing international commercial-vehicle growth, expanding its MTU Yuchai data-centre JV and investing in heavy-duty gas engines and New Energy products.

• Singapore BMU expects precast and ready-mixed concrete orders to grow; Tasek expects demand to improve with infrastructure development and the Johor-Singapore Special Economic Zone.

• Powertrain R&D continues in hybrid systems, integrated electric drive axles, hydrogen fuel cells and hydrogen combustion engines.