Keong Hong (5TT) H2 2025 earnings summary

Executive summary

• FY2025 returned to profit: revenue rose 5.7% YoY to S$182.4m and net profit was S$10.2m, versus a S$3.9m net loss in FY2024.

• The recovery reflected construction progress, improved cost management and productivity, alongside lower finance costs and stronger other income.

• Cash and cash equivalents were S$26.8m; the Board did not propose a dividend, prioritising working capital and financial resilience.

• Auditors issued a qualified opinion over the accounting for the Katong Holdings investment and its disposal, citing insufficient audit evidence.

Financial highlights

• Revenue was S$182.368m, up from S$172.597m; cost of sales fell to S$169.061m from S$178.025m.

• Gross profit was S$13.307m versus a S$5.428m gross loss; gross margin improved to 7.3% from negative 3.1%.

• Net profit after tax was S$10.154m versus a S$3.916m net loss; basic and diluted EPS were 4.32 cents versus a 1.67-cent loss.

• Other income increased 50.3% to S$13.135m; finance costs declined 26% to S$1.590m.

• Reported profit included a S$3.6m reversal of loss allowance on long-term interests and a S$383k gain on disposal of a non-current asset held for sale.

Outlook and guidance

• Singapore GDP growth is forecast at 2.0%–4.0% in 2026; management aims to build on FY2025 momentum through productivity, technology investment and business diversification.

• Singapore construction demand is projected at S$47bn–S$53bn in 2026 and S$39bn–S$46bn annually from 2027–2030.

• Construction order book was approximately S$203m at 30 September 2025, split 49.8% residential and 50.2% commercial projects.

• No immediate land acquisition is planned; the business remains open to attractive development opportunities.

• Punggol Regional Sports Centre TOP is targeted for March 2026; no FY2025 dividend was proposed as financial resilience remains a priority.