Kinergy Corporation (3302) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 16.2% YoY to S$51.523m; net profit was S$2.894m versus a S$1.513m loss, supported by higher EMS sales and S$8.5m in fund carry income.

• Profit attributable to owners was a S$257k loss, improving from a S$1.837m loss; basic and diluted loss per share narrowed to 0.03 Singapore cents from 0.20 cents.

Financial highlights

• Cost of sales rose 14.4% to S$46.703m; gross profit increased 37.1% to S$4.820m and gross margin improved to 9.4% from 7.9%.

• Other income and gains increased to S$9.333m from S$3.520m, including S$8.5m carry income from a fund reaching end of life.

• Profit before tax was S$5.047m versus a S$398k loss; income tax expense was S$2.153m, up from S$1.115m.

• EBITDA was S$7.965m versus S$2.182m; EBIT was S$5.489m versus a S$17k loss.

Outlook and guidance

• Near-term ODM outlook is challenging; assembly and test recovery typically lags wafer fabrication by 3–6 months.

• Automated farming equipment designed for an associate is gaining market acceptance, with revenue expected to commence in 2025.

• Two new funds are being established and are expected to generate management fees from later in 2024.