Ley Choon Group (Q0X) H1 2024 earnings summary

Executive summary

• 1HFY24 revenue reached a 10-year high of S$62.8m, up 2.5% YoY; profit after tax rose 15.2% to S$5.4m, supported by higher gross profit and favorable project mix.

• The S$265.2m unfulfilled order book underpins earnings visibility and execution priorities focused on scheduled delivery, operational efficiency, and disciplined cost and cash-flow management.

Financial highlights

• Gross profit rose 20.8% YoY to S$10.3m; profit before tax increased 20.4% to S$5.6m.

• Other income fell 10.5% to S$1.7m, mainly due to lower Singapore Government grants; administrative expenses rose 10.1% to S$5.4m.

• Profit after tax increased to S$5.4m; basic and diluted EPS rose to 0.36 cents from 0.31 cents.

Outlook and guidance

• The S$265.2m order book at 30 Sep 2023 equaled 2.1x trailing 12-month revenue and provides 24–36 months of earnings visibility.

• Tender activity has stepped up, with a goal of exceeding normal order-book replenishment; bidding for underground infrastructure projects will remain prudent.

• Management remains positive despite inflation, high interest rates, higher manpower costs, and geopolitical tensions; priorities include project execution, efficiency, and cost, cash-flow, and business-risk management.