SHS Holdings (566) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 4.7% YoY to S$39.0m, while profit attributable to equity holders rose 52.4% to S$2.176m.

• Profit after tax was S$2.266m; cash and bank balances were S$51.7m, and a net cash position was reported.

Financial highlights

• Gross profit declined 11.7% YoY to S$7.441m; gross margin was 19.1%, versus 20.6% in H1 2022.

• Profit before tax rose 30.8% YoY to S$2.354m; profit after tax increased 54.9% to S$2.266m.

• Other operating expenses fell 35.2% to S$2.256m; total operating expenses decreased 18.7% to S$6.004m.

• Basic and diluted EPS increased to 0.35 cents from 0.22 cents in H1 2022.

Outlook and guidance

• E&C steel engineering contracts were on track; projects approaching completion could create capacity for additional jobs, while efforts target more Design Studio orders over the next 12 months.

• Solar rooftop projects and panel distribution were expected to improve, with more orders anticipated in Singapore and Indonesia; no new solar development projects had been committed amid a cautious approach.

• CP operations planned to remain selective on orders amid competitive pricing, higher costs and consolidation among major customers.

• Operations were to remain prudent amid global economic challenges, geopolitical developments and cost pressures; no interim dividend was recommended, with dividends considered at year-end subject to performance and cash needs.