Lum Chang (L19) H1 2024 earnings summary

Executive summary

• 1H2024 revenue rose 18% YoY to $232.6m; net profit increased to $5.3m from $0.9m, mainly on stronger construction performance and cost savings.

Financial highlights

• Gross profit increased 57% to $22.0m; profit before tax rose to $6.5m from $0.3m.

• Net profit attributable to equity holders was $3.6m versus $0.7m; basic and diluted EPS were 0.96 cents versus 0.18 cents.

• Other income fell 30% to $1.3m, mainly on lower government grants; net other losses were $0.3m, mainly currency translation losses on a Malaysian Ringgit quasi-loan repayment.

• Total comprehensive income was $2.1m versus a $3.7m loss; OCI included $2.7m of FVOCI fair-value losses.

Outlook and guidance

• Construction projects in progress had an outstanding value of $1.2b at 31 December 2023; the construction division will focus on completing projects, managing overheads and manpower, and selectively pursuing new work.

• A further phase of 34 Malaysian bungalow units was slated for launch in 2H FY2024.

• A 0.50-cent-per-share tax-exempt interim dividend was declared, payable 15 March 2024.