Nam Lee Pressed Metal Industries (G0I) H2 2024 earnings summary

Executive summary

• FY2024 returned to profitability, with profit after tax of S$12.2m versus a S$1.0m loss in FY2023; revenue grew on stronger reefer-container orders and improved product mix.

• Construction activity remained stable, while aluminium industrial-product orders recovered as container shipping normalized.

Financial highlights

• Revenue rose 13.4% to S$180.3m from S$158.9m, mainly on additional reefer-container orders, partly offset by lower construction revenue.

• Gross profit increased to S$34.4m from S$14.8m; gross margin expanded to 19.1% from 9.3%, reflecting reefer revenue and a higher-margin construction mix.

• Operating profit was S$17.1m versus S$0.6m; profit before tax was S$16.0m versus a S$0.5m loss, and net income was S$12.2m versus a S$1.0m loss.

• Diluted EPS was 5.06 cents versus a loss of 0.41 cents; income tax expense was S$3.8m versus S$0.5m.

Outlook and guidance

• Cautiously optimistic: construction demand is expected to grow with housing needs, while reefer-container business is expected to remain stable.

• Inflation, volatile raw-material costs, global economic uncertainty, geopolitical tensions and trade wars are expected to remain challenges near term.

• Priorities include financial prudence, innovation, operational excellence and pursuing opportunities for sustainable growth.