Keong Hong (5TT) H1 2026 earnings summary

Executive summary

• H1 FY2026 revenue fell 63.5% YoY to S$44.8m as completed projects and fewer ongoing projects reduced activity; net loss was S$2.6m versus S$7.5m profit a year earlier.

• Gross losses reflected ongoing defect rectification and remaining costs on completed projects; a S$78.3m construction contract secured in March lifted the order book to ~S$241m at 31 March 2026.

Financial highlights

• H1 revenue was S$44.8m, down 63.5% YoY; cost of sales fell 60.4% to S$45.5m, while gross loss was S$0.7m versus S$8.0m gross profit in H1 FY2025.

• H1 gross margin was -1.5% versus 6.5% a year earlier; Q2 revenue declined 59.1% to S$21.1m and gross margin was -9.9% versus 8.1%.

• H1 net loss was S$2.6m against S$7.5m net profit; basic and diluted EPS were both -1.12 cents versus 3.18 cents.

• Other income decreased 76.6% to S$2.2m, mainly reflecting the absence of the prior-year USD/SGD exchange gain and interest income from an associate after loan capitalization.

• Administrative expenses fell 31.2% to S$3.9m, attributed to lower depreciation and cost management; finance costs declined 23.5% to S$0.6m as borrowings were lower.

Outlook and guidance

• Secured a S$78.3m private residential construction contract in March; order book stood at ~S$241m as of 31 March 2026.

• Construction opportunities targeted across private and public housing, healthcare and commercial projects, supported by anticipated steady sector expansion in 2026.

• Continued pursuit of partnerships with established developers for land acquisitions and property development projects.

• No dividend was declared or recommended; cash conservation was cited as necessary to sustain operations amid challenging conditions and financial performance.