SHS Holdings (566) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 16.5% YoY to S$32.6m; net loss attributable to equity holders was S$1.05m versus S$2.18m profit in H1 2023.

• Total equity was S$133.7m at 30 June 2024, down from S$136.6m at 31 December 2023.

Financial highlights

• Gross profit declined 47.5% to S$3.9m; gross margin was 12.0% versus 19.1% in H1 2023.

• Loss before tax was S$0.97m and loss after tax was S$1.17m; basic and diluted EPS was a loss of 0.17 cents versus earnings of 0.40 cents.

• Other income rose 56.8% to S$2.15m, supported by rental income and favorable foreign-exchange gains on USD bank deposits.

• Operating expenses increased 9.8% to S$6.59m, mainly due to higher travel, depreciation and staff-related costs; net impairment losses on financial assets were S$0.35m.

Outlook and guidance

• E&C opportunities are supported by major government projects, including MRT network expansion and older-estate redevelopment; several new projects were scheduled to start in July 2024.

• No interim dividend was recommended; dividends are considered at year-end subject to performance and cash requirements.