King Wan Corporation (554) H1 2025 earnings summary

Executive summary

• 1H2025 revenue rose 8% YoY to S$42.5m as construction activity increased; gross margin improved to 9.1% from 1.0%.

• Profit after tax declined 20% YoY to S$2.4m, as prior-period impairment write-backs and interest income did not recur.

Financial highlights

• Gross profit increased to S$3.9m from S$0.4m; administrative expenses eased to S$2.7m from S$2.9m.

• Share of profit from associates and joint venture rose to S$1.5m from S$0.5m, reflecting profits from Tuas South Workers' Dormitory.

• Finance costs fell to S$0.7m from S$0.9m; income tax was an expense of S$0.3m versus a credit of S$0.2m.

• Net cash used in operating activities was S$1.6m, versus S$0.2m in 1H2024; period-end cash and cash equivalents were S$8.3m.

Outlook and guidance

• M&E remains the core business; M&E and portable lavatory rentals are expected to continue generating income streams.

• Secured M&E contract backlog was S$104.2m as at the announcement date; liquidity will be monitored to meet obligations.