SHS Holdings (566) H2 2024 earnings summary

Executive summary

• FY2024 revenue edged up 0.9% YoY to S$82.977m; profit attributable to shareholders rose 28.3% to S$3.202m despite lower gross profit and pressure in Engineering & Construction margins.

• Engineering & Construction and Solar Energy revenue grew on project progress, while Corrosion Prevention and Trading of Commodities revenue fell amid selective order-taking and price volatility.

Financial highlights

• Revenue was S$82.977m vs S$82.204m YoY; gross profit fell 8.5% to S$11.838m, and profit before tax declined to S$2.826m from S$3.366m.

• Profit for the year was S$3.253m vs S$2.762m; profit attributable to owners increased to S$3.202m from S$2.495m.

• Other income eased 3.3% to S$3.1m; operating expenses rose 4.3% to S$12.219m, while finance costs fell 25.2% to S$0.822m.

• Operating cash inflow was S$3.470m and investing cash inflow S$3.532m; financing cash outflow was S$5.154m, producing a S$1.848m net cash increase.

Outlook and guidance

• 2025 opportunities are expected in Engineering & Construction, supported by MRT network expansion, and Solar Energy, supported by sustainability initiatives and regional renewable-energy collaborations.

• Operations and strategic decisions remain cautious amid weak visibility; priorities include cost control, competitive pricing, and responsiveness to changing conditions.

• A proposed acquisition of two China-based businesses would add precision aluminium manufacturing and recycling for the EV battery supply chain; production lines are operational and sales have begun.