Tat Seng Packaging Group Ltd: 1H2025 Financial Analysis & Investor Insights
Tat Seng Packaging Group Ltd, a leading manufacturer of corrugated paper products in Singapore and China, has released its unaudited interim financial statements for the six months ended 30 June 2025. Below is a structured analysis of its financial performance, dividend payouts, and key business developments, aimed at helping investors make informed decisions.
Key Financial Metrics and Performance Review
| Metric |
1H2025
(Current Period) |
2H2024
(Previous Half-Year) |
1H2024
(Same Period Last Year) |
YoY Change
(vs 1H2024) |
QoQ Change
(vs 2H2024) |
| Revenue |
\$111.1M |
\$127.2M |
\$127.2M |
-12.7% |
-12.7% |
| Gross Profit |
\$22.8M |
\$28.1M |
\$28.1M |
-19.0% |
-19.0% |
| Net Profit Attributable to Owners |
\$7.1M |
\$10.1M |
\$10.1M |
-29.9% |
-29.9% |
| EPS (cents) |
4.51 |
6.44 |
6.44 |
-29.9% |
-29.9% |
| Interim Dividend per Share (S\$) |
0.010 |
0.030 |
0.030 |
-66.7% |
-66.7% |
| Net Asset Value per Share (S\$) |
1.2755 |
1.2876 |
1.2876 |
-0.9% |
-0.9% |
Historical Performance Trends
Tat Seng Packaging’s 1H2025 performance marks a significant downturn from 1H2024. Revenue declined by 12.7%, gross profit fell by 19.0%, and net profit attributable to owners dropped 29.9%. The interim dividend per share was reduced to S\$0.010, down from S\$0.030 in the prior period. The net asset value per share also saw a slight decline.
Exceptional Items and Expenses
- Net Finance Income: Decreased by 49.6% due to net losses on fair value of other financial assets and lower interest income from fixed deposits and time deposits.
- Tax Expense: Decreased by 57.7% in line with lower profit before tax.
- Foreign Currency Translation Reserve: Decreased by S\$4.3M due to weakening RMB against SGD.
- Other Income: Fell 41.2% due to reduced government grants.
Divestments, Asset Commitments, and Corporate Actions
- No share buybacks, placements, dilution, or treasury shares during the period.
- No new subsidiaries, associates, or changes in shareholding stakes.
- Capital commitments increased to S\$5.9M for property, plant, and equipment, up from S\$0.26M at year-end.
Related Party Transactions & Unusual Fund Flows
- Aggregate value of interested person transactions (excluding minor items): S\$563,532, mainly involving Tee Yih Jia Food Manufacturing Pte Ltd (Associate of Director).
- No general mandate for IPTs from shareholders.
Macroeconomic and Industry Factors
The group faces headwinds from ongoing US-China trade conflicts, excess capacity, and intense price competition in the Chinese corrugated packaging market. Weakening RMB and competitive selling prices have also impacted margins. The management remains vigilant on credit exposure and is focused on cost management, operational efficiency, and productivity improvements.
Chairman’s Statement
“The Group will continue to monitor the evolving situation closely. To overcome these challenges, the Group remain vigilant in managing credit exposure and maintaining a healthy financial position. The Management will continue to drive the Group’s business performance by enhancing human capital development and executing improvement strategies in terms of cost management, enhancing operational efficiency and boosting productivity.”
Tone: The statement is cautious and signals vigilance amid macroeconomic challenges, yet expresses commitment to maintaining financial health and operational improvements. The overall tone is neutral to slightly defensive.
Dividend Details
- Interim Ordinary Dividend: S\$0.010 per share, payable 12 November 2025 (Record Date: 31 October 2025).
- Previous Interim Dividend: S\$0.030 per share paid on 20 September 2024.
Conclusion & Investor Recommendations
Overall Assessment: The Group’s financial performance for 1H2025 is weak, with notable declines in revenue, profit, EPS, and dividend payout. The macroeconomic environment and industry-specific challenges, such as overcapacity and currency headwinds, further cloud the outlook. Management is responding with cost controls and operational focus, but visibility on near-term recovery is limited.
If You Are Currently Holding the Stock: Consider reviewing your position. The substantial drop in profit and dividend, combined with industry and macro risks, may warrant a defensive stance. If you seek yield or growth, monitor for signs of operational improvement or macro stabilization before increasing exposure.
If You Are Not Currently Holding the Stock: Exercise caution before initiating a position. Wait for evidence of revenue stabilization, margin improvement, or positive industry developments. The current risk/reward profile does not favor new investment unless long-term value emerges or market conditions improve.
Disclaimer: This analysis is based solely on information contained in the company’s published financial report and does not constitute investment advice. Please consider your own financial circumstances and consult a professional adviser before making any investment decisions.
View Tat Seng Pkg Historical chart here
