SHS Holdings (566) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 216.0% YoY to S$262.2m, largely from aluminium operations acquired in China on 16 June; net loss attributable to owners was S$13.071m.

• Lower margins on some projects, higher operating costs and impairment losses contributed to the net loss; total comprehensive income was S$0.883m after S$13.979m of other comprehensive income.

Financial highlights

• Revenue increased to S$262.202m from S$82.977m; gross profit declined 22.4% to S$9.185m.

• Loss before tax was S$12.464m versus profit before tax of S$2.826m; loss after tax was S$13.096m versus profit of S$3.253m.

• Other income rose to S$4.627m from S$3.100m; total operating expenses were S$24.215m versus S$11.290m.

• Net impairment losses on financial assets were S$4.574m, compared with a net reversal of S$0.929m in FY2024.

• Net fair-value gains on FVOCI equity investments were S$14.013m, supporting positive total comprehensive income despite the net loss.

Outlook and guidance

• Cautiously optimistic on Engineering & Construction and Solar Energy, supported by infrastructure projects including MRT expansion and Singapore’s sustainability focus.

• Competition, rising costs and tighter environmental regulations remain challenges; aluminium operations in Guangxi will prioritize measured capital spending, efficiency and margin recovery.

• No numerical financial guidance was stated; planned priorities include reviewing capital expenditure and improving capacity and efficiency in the new aluminium operations.