Tai Sin Electric 1H FY2026 profit halves to S$7.4m on onerous contract hit despite 20% revenue growth
Summary:
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Revenue rose 20.0% to S$282.2m in 1H FY2026, driven by stronger cable and wire and electrical material distribution sales, including new renewable energy contributions.
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Net profit attributable to shareholders fell 53.1% to S$7.4m as gross profit dropped 17.3% and the Group booked S$11.8m provision for onerous contracts linked to fixed‑price copper exposure.
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Operating cash flow slipped to S$2.6m from S$7.3m, with higher working capital tied up in receivables and inventories, while bank borrowings climbed to S$105.7m, lifting total liabilities to S$205.0m.
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Despite the earnings decline, equity attributable to shareholders edged up to S$224.5m, with net asset value rising to about 48.5 cents per share as translation reserves improved.
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The Group expanded into regional renewables via the S$7.3m acquisition of BayWa r.e. Solar Systems units in Thailand and the Philippines and a 25% stake in EV Mobility, plus a S$4.4m capital injection into its Malaysian cable arm.