King Wan Corporation (554) H2 2025 earnings summary

Executive summary

• FY2025 net profit attributable to owners fell to S$3.4 million from S$12.4 million, mainly on lower associate and JV profits; M&E engineering returned to profitability after a FY2024 loss.

• Revenue declined 9.2% to S$86.8 million, while gross margin improved to 8.1% from 1.4% as post-pandemic projects contributed better margins.

Financial highlights

• Revenue was S$86.756 million versus S$95.518 million; gross profit rose to S$7.034 million from S$1.310 million.

• Profit before tax was S$3.683 million versus S$12.084 million; net profit was S$3.416 million versus S$12.381 million, and owners’ profit was S$3.436 million versus S$12.402 million.

• Other comprehensive loss was S$4.279 million, including a S$4.293 million fair-value loss on FVTOCI equity securities; total comprehensive loss was S$0.863 million.

• Operating cash flow was an outflow of S$0.691 million versus an inflow of S$3.270 million; cash and cash equivalents ended at S$10.467 million, up from S$9.058 million.

Outlook and guidance

• M&E outlook was described as stable and optimistic over the medium term, supported by project pipeline and a S$152.3 million order book at 31 March 2025.

• Rising costs and economic uncertainty are expected to pressure M&E; current contracts are expected to support a sustainable income stream.

• Dormitory rental and occupancy trends are expected to remain positive, supported by construction recovery, strong worker demand and tightening bed supply.

• Grain and agricultural demand may support dry-bulk charter rates in H1; iron ore demand is expected to recover in the medium term, while fleet supply dynamics may help stabilise rates over time.