Ley Choon Group (Q0X) H1 2025 earnings summary

Executive summary

• 1HFY2025 revenue rose 2.5% YoY to S$64.4m; profit for the period increased 35.9% to S$7.3m, supported by higher gross profit and lower finance costs.

• Higher road works and cable-laying activity and a more favorable mix of higher-margin projects lifted gross profit; lower airport and near-completion pipe-laying work partly offset revenue growth.

Financial highlights

• Revenue was S$64.4m, up 2.5% YoY; cost of sales declined 2.7% to S$51.1m and gross profit increased 29.4% to S$13.3m.

• Profit before tax rose 46.8% to S$8.3m; profit for the period was S$7.3m versus S$5.4m, while total comprehensive income rose 34.9% to S$7.4m.

• Finance costs fell 74.2% to S$0.2m, primarily following full repayment of borrowings; other operating expenses rose 184.2% to S$0.1m, mainly due to higher FX losses.

• Operating cash flow was S$1.2m versus S$10.8m; the period-end cash balance declined to S$3.5m from S$9.4m at 31 March 2024.

Outlook and guidance

• Unfulfilled order book stood at S$220.1m; the outlook remains positive for public-sector and infrastructure projects, with a focus on careful tendering and efficient project execution.

• Cautious optimism is tempered by global uncertainty and rising construction costs; priorities include operational efficiency and close management of costs, cash flow and business risks.