Koh Brothers Group (K75) H2 2024 earnings summary

Executive summary

• Returned to attributable net profit of $1.7 million in 2H 2024; FY 2024 attributable net loss narrowed to $5.5 million from $22.0 million in FY 2023.

• FY 2024 revenue declined 33% to $238.4 million, while gross profit rose to $19.3 million from $7.5 million.

• Construction order book reached $828.7 million, with project visibility to 2029.

Financial highlights

• 2H 2024 revenue fell 21% YoY to $125.5 million from $159.7 million, mainly due to lower Real Estate revenue after project completion in 1H 2024.

• FY 2024 revenue declined to $238.4 million from $356.2 million in FY 2023.

• Gross profit increased to $19.3 million from $7.5 million, reflecting improved gross profit margins in Bio-Refinery and Renewable Energy, Building Materials and Real Estate.

• Other income rose 53% to $2.1 million; other gains increased 474% to $3.4 million, including investment-property fair value and net FX gains.

• Share of profit from associates and JVs rose 92% to $5.2 million, mainly from higher Real Estate JV contributions.

Outlook and guidance

• Construction order book of $828.7 million includes public-sector awards from Sport Singapore and LTA, with visibility to 2029.

• Execution priorities include Circle Line 6, Deep Tunnel Sewerage System Phase 2 and Tuas Water Reclamation Plant.

• Strategy is to pursue construction tenders and selectively replenish the land bank; real estate development will prioritize unique opportunities with experienced partners.