Mun Siong Engineering (MF6) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 9.0% YoY to $64.8m; loss before tax widened to $6.2m from $2.5m, reflecting weaker Singapore results and losses in Singapore and the US.

• Malaysia and US operations increased their combined revenue share to 26.0% from 9.3% in FY2023, supporting geographic diversification.

Financial highlights

• Revenue was $64.826m versus $71.207m; cost of sales declined 5.0% to $63.691m, leaving gross profit of $1.135m versus $4.197m.

• Operating loss was $6.210m versus $2.387m; loss before tax was $6.188m versus $2.486m, and net loss was $5.523m versus $2.805m.

• Other income decreased to $1.305m from $2.238m; it included a $0.776m gain on asset disposal in FY2023.

Outlook and guidance

• FY2025 Singapore operations expect workforce optimization to improve competitiveness and profitability; renewed long-term maintenance work is expected to help stabilize activity.

• Malaysia growth prospects are linked to energy, manufacturing, infrastructure demand and the Singapore–Johor Bahru Special Economic Zone; client approval delays remain a cash-flow constraint.

• Taiwan’s CPC suspension is expected to end on 31 December 2025; future opportunity depends on the contracting framework after restrictions lift.

• US operations anticipate more turnaround work following successful FY2024 projects; higher credit-facility drawdowns are likely in FY2025 to meet working-capital needs.