Hock Lian Seng Holdings Limited: 1H 2025 Financial Results Review
Hock Lian Seng Holdings Limited (“HLS”), a Singapore-listed company with core operations in civil engineering, property development, and property investment, released its unaudited condensed interim financial statements for the six months ended 30 June 2025. The report reveals significant shifts in profitability and cash flow, set against a backdrop of challenging industry conditions but resilient operational execution.
Key Financial Metrics and Performance Comparison
| Metric |
1H 2025 |
2H 2024 |
1H 2024 |
YoY Change (1H25 vs 1H24) |
QoQ Change (1H25 vs 2H24) |
| Revenue |
\$103.3m |
Not disclosed |
\$99.8m |
+3.5% |
N/A |
| Gross Profit |
\$7.9m |
Not disclosed |
\$21.3m |
-63.1% |
N/A |
| Net Profit (after tax) |
\$8.7m |
Not disclosed |
\$20.4m |
-57.5% |
N/A |
| EPS (basic & diluted, cents) |
1.68 |
Not disclosed |
3.98 |
-57.9% |
N/A |
| Dividend per Share (interim/final) |
Nil (interim) |
1.8 cents (final for FY24, paid in 1H25) |
Nil (interim) |
N/A |
N/A |
| Net Asset Value per Share (cents) |
55.5 |
55.6 (as of Dec 2024) |
— |
-0.2% |
-0.2% |
| Operating Cash Flow |
\$4.6m |
Not disclosed |
\$29.0m |
-84.1% |
N/A |
| Ending Cash Balance |
\$152.8m |
\$159.3m |
\$156.1m |
-2.1% |
-4.1% |
| Treasury Shares Purchased |
509,000 (\$0.2m) |
— |
— |
N/A |
N/A |
Segment Performance
- Civil Engineering: Revenue rose sharply to \$90.1m (+25%) as key projects (Serangoon North and Aviation Park stations) ramped up. However, gross profit collapsed to \$2.0m, down 80%, due to elevated costs and lack of one-off cost savings that boosted 1H 2024.
- Property Development: Revenue dropped to \$13.1m (from \$27.7m), reflecting slower sales at Shine@TuasSouth. Gross profit fell in tandem due to reduced transaction volume.
- Investment Properties: Revenue remained stable at \$0.1m, with no significant changes.
Other Key Developments and Notable Items
- Other Income: Fell 15.4% to \$5.4m, mainly due to lower rental income from unsold units, reduced government grants, and decreased interest income.
- Operating Cash Flows: Declined sharply, mainly due to higher contract assets, lower sales from development properties, and a large dividend payment (\$9.2m).
- Investment Securities: Increased to \$40.5m, reflecting ongoing portfolio allocation to quoted equities and bonds, with a positive fair value gain of \$0.8m.
- Share Buyback: The company repurchased 509,000 shares as treasury shares at a cost of \$0.2m.
- Dividend Policy: No interim dividend was declared. The company paid a final dividend of 1.8 cents per share in 1H 2025. This maintains the practice of annual, not interim, dividends.
Balance Sheet and Cash Position
- Net Assets: Stood at \$283.9m, down by \$0.7m from December 2024, mainly due to dividend payout and treasury share purchases.
- Net Current Assets: \$238.8m, with a strong cash and short-term deposit position of \$152.8m.
- Order Book: Civil engineering order book at \$335m, providing visibility for future revenue streams.
Management Commentary and Outlook
The Chairman’s statement, delivered by Executive Chairman Chua Leong Hai, maintains a cautiously optimistic but realistic tone. The group acknowledges ongoing challenges in the construction sector, citing continued cost pressures, labor shortages, and a competitive environment. Management intends to remain aggressive in tendering for infrastructure projects while exploring new opportunities to enhance shareholder value.
The property development segment’s Shine@TuasSouth project has achieved 59.2% sales and 39% leasing, offering some stability despite softer new sales.
No interim dividend has been proposed, consistent with the group’s established practice of recommending dividends only with full-year results.
Risks, Exceptional Items, and Corporate Actions
- No asset revaluations or impairments were recorded during the period.
- No unusual fund flows or related-party transactions were disclosed beyond routine management remuneration.
- No significant legal, regulatory, or macroeconomic events were disclosed as impacting the current period.
- No new fundraisings, IPOs, or divestments occurred.
- Share buybacks were conducted modestly.
Conclusion: Performance and Outlook
Hock Lian Seng Holdings delivered a mixed set of results for 1H 2025. While revenue grew modestly on the back of strong civil engineering execution, profitability dropped sharply due to intense margin compression and the absence of previous one-off cost savings. Cash flows weakened, but the balance sheet remains robust with significant liquidity and a healthy order book.
The outlook is neutral to slightly cautious: the company is well-positioned with ample cash and a substantial order backlog, but faces persistent industry headwinds that may cap near-term profitability. The group’s prudent capital management, strong balance sheet, and commitment to shareholder returns via annual dividends provide a measure of resilience in an otherwise challenging environment.
View Hock Lian Seng Historical chart here
