Metasurface Technologies (8637) H1 2024 earnings summary

Executive summary

• H1 revenue was SGD18.598m, down 1.5% YoY; operating profit rose to SGD3.488m from SGD1.346m, while profit for the period was SGD2.097m versus SGD2.217m.

• Adjusted profit increased to SGD4.413m from SGD3.845m; 2023 net profit included discontinued-operation earnings and a subsidiary disposal gain.

Financial highlights

• Revenue was SGD18.598m versus SGD18.873m; cost of sales fell to SGD11.203m from SGD11.602m, lifting gross profit to SGD7.395m from SGD7.271m.

• Operating profit rose to SGD3.488m from SGD1.346m; profit before tax was SGD2.754m versus SGD0.692m, and continuing-operations profit was SGD2.097m versus SGD75,000.

• Profit for the period was SGD2.097m versus SGD2.217m; 2023 included SGD2.142m from discontinued operations, including a SGD2.529m subsidiary disposal gain.

• Adjusted profit was SGD4.413m versus SGD3.845m, with adjusted margin of 23.7% versus 20.4%, excluding specified share-based payments, listing expenses and disposal gains.

• Administrative expenses declined to SGD5.717m from SGD7.151m, mainly as 2024 had no share-based payments; higher listing and business development expenses partly offset the decrease.

Outlook and guidance

• Unfulfilled purchase-order backlog was SGD17.2m at 30 June 2024 versus SGD25.6m a year earlier.

• Plans include expanding in data storage, oil and gas, and aerospace; pursuing new customers and module assembly work; and diversifying revenue and customer sources.

• Management cited experienced leadership and market reputation as support for competing and expanding the customer base; no numerical financial guidance was stated.