Swang Chai Chuan (2321) H2 2024 earnings summary

Executive summary

• FY2024 revenue declined 2.0% YoY to RM913.0m, while attributable profit rose to RM28.1m from RM27.1m.

• Gross margin and net profit margin improved, supported by competitive pricing; higher administrative costs partly offset the gains.

Financial highlights

• Revenue was RM913.008m versus RM931.920m in FY2023; gross profit increased to RM113.484m from RM110.342m.

• Profit before tax was RM36.575m versus RM36.742m; income tax expense fell to RM8.512m from RM9.626m.

• Profit for the year was RM28.063m versus RM27.116m; basic and diluted EPS was 2.81 sen versus 2.71 sen.

• Finance costs declined 43.5% to RM1.3m, mainly on lower use of bankers’ acceptance facilities; administrative and other operating expenses rose 28.3% to RM25.8m.

Outlook and guidance

• Plans to pursue business opportunities by building on industry expertise and core strengths, while applying careful cost controls amid high inflation to support margins and competitiveness.

• Unutilised listing proceeds of HK$55.8m are expected to be used by FY2026, primarily for distribution and sales capabilities and own-products development.