Lum Chang (L19) H2 2024 earnings summary

Executive summary

• FY2024 returned to profitability: revenue rose to $500.4m from $393.4m, with $7.4m profit attributable to equity holders versus a $28.7m loss in FY2023.

• Improved construction results and higher Malaysian residential sales supported the turnaround despite inflation, elevated interest rates and geopolitical uncertainty.

Financial highlights

• Revenue was $500.418m, up 27% YoY; gross profit was $41.116m versus $3.727m in FY2023.

• Profit before tax was $12.509m versus a $23.398m loss; net profit was $9.261m versus a $27.610m loss.

• Profit attributable to equity holders was $7.361m versus a $28.662m loss; basic and diluted EPS were 1.96 cents versus a 7.61-cent loss.

• Operating cash flow was an outflow of $9.840m, compared with an inflow of $25.520m in FY2023; cash and cash equivalents at year-end were $51.248m versus $91.035m.

Outlook and guidance

• FY2024 Singapore GDP growth was projected at 2%–3%; BCA forecast 2024 local construction demand of $32b–$38b, with 55% expected from the public sector.

• BCA expected annual construction demand of $31b–$38b from 2025–2028, led by public projects including MRT works, hospital redevelopment and integrated developments.

• Operating conditions expected to remain challenging amid competition, manpower cost increases and geopolitical uncertainty; bids to remain selective as tender prices stay competitive and compressed.

• Construction contracts’ unsatisfied transaction price was $1.026b at 30 June 2024, expected to be recognised over the next one to five years as work progresses.