Keong Hong swings to S$10.2m FY2025 net profit on 7.3% margin as revenue rises to S$182.4m
Summary:
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FY2025 revenue grew 5.7% to S$182.4 million, driven by higher recognition from construction projects progressing during the year.
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The group swung to a net profit of S$10.2 million from a S$3.9 million loss in FY2024 as gross margin recovered to 7.3% from negative 3.1%.
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Cost of sales fell 5.0% to S$169.1 million on effective cost management and near completion of high-cost pre-pandemic projects, while other income rose 50.3% to S$13.1 million on FX gains, scrap steel sales and higher rental income.
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Operating leverage improved with finance costs down 26.0% to S$1.6 million and administrative expenses almost halved to S$9.8 million, supporting earnings per share of 4.32 cents and NAV per share of 25.6 cents.
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Despite a S$6.0 million net cash inflow lifting cash and cash equivalents to S$26.8 million, the board is not proposing any FY2025 dividend, prioritising working capital and future investment needs.