Hock Lian Seng FY2025 net profit halves to S$17.0m on 50% gross profit slump, as higher project costs bite despite record S$186m revenue
Summary:
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Full-year revenue rose 1.5% to S$186.3 million, driven by stronger work on the Serangoon North (CR113) and Aviation Park (CR103) civil projects, but Group gross profit fell 49.8% to S$15.3 million on sustained cost pressures and absence of prior-year project savings.
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Profit before tax dropped 47.2% to S$19.9 million and profit attributable to shareholders slid 46.8% to S$17.0 million, as other income declined 23.7% to S$11.1 million on lower interest and rental income and smaller gains on asset disposals.
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Civil engineering remained the core earnings driver with S$163.8 million revenue (87.9% of total), while property development revenue fell to S$22.3 million on slower unit sales at Shine@Tuas South; investment properties contributed a steady S$0.2 million.
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The balance sheet stayed strong with net assets up to S$292.9 million and net asset value per share rising to 57.1 cents (2024: 55.6 cents), even after a S$71.3 million cash outflow tied to the S$88.2 million Pioneer Road industrial land acquisition and a new S$44.1 million secured term loan.
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The board proposes a lower first and final dividend of 1.125 cents per share (FY2024: 1.80 cents), citing a challenging construction outlook marked by competition, labour shortages and rising input costs, while highlighting a S$386 million order book and plans to launch the green B2 industrial project at Pioneer Road in early 2027.