King Wan Corporation (554) H1 2026 earnings summary

Executive summary

• 1H FY2026 revenue fell 50% YoY to S$21.3m as construction activity slowed; net profit fell 67% to S$0.8m, supported by a higher share of associate and JV profits.

• M&E activity is expected to remain challenging amid global uncertainty and cost pressure; secured M&E contracts on hand totaled S$198.3m.

Financial highlights

• Revenue was S$21.339m, down 50% YoY; gross profit fell 88% to S$0.453m, with gross margin at 2.1% versus 9.1%.

• Profit before tax declined 77% to S$0.627m; profit after tax fell 67% to S$0.786m, while EPS decreased to 0.11 cents from 0.34 cents.

• Share of profit from associates and the JV rose 101% to S$3.046m, mainly from higher profits at the Workers’ Dormitory investment.

• Total comprehensive loss was S$0.598m, including a S$1.258m FVTOCI equity loss linked to a lower quoted KTIS share price.

Outlook and guidance

• M&E business is expected to face challenges over the next 12 months, including rising costs and heightened global uncertainty; M&E and portable lavatory rental remain income sources.

• Secured M&E contracts on hand were S$198.3m; management said it would maintain vigilance and sufficient liquidity.

• Singapore’s 2025 GDP growth forecast was upgraded by MTI to 1.5%–2.5%, though risks remained tilted to the downside.