GP Industries: Net Profit Growth of 62.9% in 1HFY2025 – Investment Analysis

Business Description

Revenue Streams and Customer Base
The company’s revenue streams come from the sales of batteries and battery-related products and audio products. The battery business contributed 77.4% of the total revenue, while the audio business contributed 22.6% [[3]]. The customer base is geographically diversified, with sales in Asia, the Americas, and Europe. Sales to Asia and the Americas have increased, whereas sales to Europe have decreased [[2]].

Financial Statement Analysis

Income Statement
For the first half of FY2025, GP Industries reported a 1.1% increase in revenue to S\$570.5 million compared to 1HFY2024. Gross profit improved by 9.8% to S\$169.4 million, and the gross profit margin increased from 27.4% to 29.7% [[2]]. The profit attributable to equity holders surged by 62.9% to S\$14.5 million [[3]], accompanied by a 62.5% increase in basic earnings per share to 2.99 Singapore cents [[5]]. An interim dividend of 1.5 Singapore cents per ordinary share was declared, an increase of 50% from the previous period [[28]].