Hor Kew Corporation (BBP) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 5% YoY to $33.5m, while gross profit rose 60% to $15.6m and net profit increased 38% to $4.3m.

• Higher selling prices for prefabricated metal components from newer projects and cost control lifted gross margin to 46.4% from 27.6%.

Financial highlights

• Revenue was $33.5m vs $35.3m; cost of sales fell 30% to $18.0m, contributing to gross profit of $15.6m vs $9.7m.

• Profit before tax rose 67% to $6.7m; tax expense increased to $2.4m from $0.9m; net profit was $4.3m vs $3.1m.

• G&A expense rose 80% to $6.8m, mainly from higher staff costs, receivables impairment and foreign exchange loss; finance costs fell 34% to $0.8m.

• Operating cash flow was $14.6m; investing outflow $1.1m and financing outflow $5.9m; cash flow statement cash balance closed at $16.1m.

Outlook and guidance

• Singapore construction demand is expected to remain strong; tendering will focus on projects expected to yield higher margins while managing costs.

• Actual H1 results were in line with the commentary in the FY2024 results announcement.