Soilbuild Construction Group (ZQM) H1 2024 earnings summary

Executive summary

• H1 2024 net profit was S$7.389m versus S$1.357m YoY; revenue rose 19.5% and gross margin improved to 9.6% from 5.8%.

• Order book was S$1.183b at 30 June 2024, including the S$647.5m Tuas Port contract; five new construction and five precast contracts secured since FY2023-end were valued at S$822m.

Financial highlights

• Revenue increased 19.5% to S$153.9m from S$128.7m; gross profit rose 98.2% to S$14.8m from S$7.5m.

• Profit before tax was S$7.5m versus S$1.3m; net profit rose 444.5% to S$7.389m from S$1.357m.

• Administrative expenses increased 20.6% to S$5.1m, finance expenses 4.7% to S$1.9m, and other expenses 12.4% to S$2.9m; other income declined to S$3.1m from S$3.6m.

Outlook and guidance

• The S$1.183b order book is expected to provide revenue visibility and generate positive cash flows over the next 12 months; revenue will be recognised as projects progress.

• Tendering for public- and private-sector projects will continue, with costing, estimates and bids adjusted to market conditions.

• Strategy prioritises quality growth, larger-scale projects, long-term commitments, operating efficiencies and margin improvement.