Hor Kew Corporation (BBP) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell to S$82.9m from S$104.8m as lower order books reduced delivery volumes; profit before tax more than doubled to S$16.0m on higher-margin project mix.

• Strategic priorities include higher-margin prefabrication and HDB projects, manufacturing investment, cost control and lower borrowings.

Financial highlights

• Revenue was S$82.870m, down from S$104.786m; gross profit rose to S$33.181m from S$22.678m.

• Profit before tax increased to S$15.999m from S$7.581m; profit for the year rose to S$13.722m from S$7.412m.

• Total comprehensive income was S$14.639m vs S$6.478m; currency translation contributed S$0.917m vs a S$0.933m loss in FY2023.

• Other income increased to S$4.225m from S$3.583m, including S$0.519m gain on PPE disposal and S$0.385m gain on foreign exchange.

• Tax expense was S$2.277m vs S$0.169m; finance costs declined to S$2.266m from S$2.794m.

Outlook and guidance

• Priorities for the next financial year include prefabrication and HDB projects, investment in advanced manufacturing capabilities, operational excellence and profitability.

• Expected Singapore public-sector activity includes infrastructure, residential and transport projects, with HDB BTO construction and estate upgrading cited as opportunities.