New Wave Holdings Ltd. 1H FY2026 Results Analysis

New Wave Holdings Ltd. released its unaudited financial statements for the half year ended 30 September 2025. Below is a detailed breakdown of key financial metrics, performance trends, and notable corporate developments for investors.

Key Financial Metrics

*Some quarter-on-quarter numbers are inferred based on available half-year and year-end figures.

Historical Performance Trends

• Revenue: Strong YoY growth (16.7%), driven by higher sales in Malaysia (+35%) and PRC (+57.9%). Singapore revenue declined (-34.1%), attributed to ongoing trade tensions and economic uncertainty.
• Gross Margin: Improved to 17.0% (from 16.2%), reflecting better product demand and margin management.
• Net Loss: Losses narrowed YoY, but the company remains unprofitable. Net asset value per share declined, indicating continued erosion of equity base.

Asset Revaluation and Delays

• No change in valuation of investment properties (S\$5.17m). Management deemed market conditions unchanged and will seek expert advice at next year-end.

Exceptional Earnings or Expenses

• Gain on disposal of plant/equipment: S\$23,000 this period, absent last year.
• Net impairment allowance for trade receivables: S\$41,000, up vs. reversal last year. This follows higher sales and larger trade receivables base.
• Finance costs increased 28.5% due to new term loans.
• Other expenses (amortisation and depreciation) decreased due to asset lifecycle changes and smaller leased factory in the PRC segment.

Cash Flow and Working Capital

• Operating cash outflow before working capital: S\$0.35m. Net cash outflow from operations: S\$0.30m.
• Net cash from investing: S\$19,000 (mainly disposal proceeds minus new equipment).
• Net cash from financing: S\$811,000 (new term loans and trust receipts, offset by repayments).
• Cash and cash equivalents rose to S\$1.47m (from S\$1.06m).
• Group maintains positive working capital of S\$5.05m.

Corporate Actions and Events

• No dividends declared in current or previous periods, due to accumulated losses.
• No share buybacks, dilution, placements, or mandates reported.
• No divestments, IPOs, fundraising, or asset sales apart from minor equipment disposal.
• No major legal disputes, natural disasters, or tax changes disclosed.
• No interested person transactions or related-party dealings.

Outlook and Industry Commentary

The Group remains cautious due to continued uncertainty in US tariffs, which impacts aluminium product demand, particularly in Singapore. The PRC and Malaysia segments show robust activity, but Singapore’s slowdown may persist as businesses relocate to Malaysia for logistical and cost advantages. The Group plans to strengthen its network in Malaysia and adjust operations to navigate ongoing supply chain disruptions and geopolitical risks.

Chairman’s Statement

“The Group observed positive and improved business activities in its PRC and Malaysia segments; nevertheless, the lack of clarity on US tariffs continues to affect sentiments and to rein in demand for the Group’s aluminium products. Meanwhile the Singapore segment has witnessed slowdown in demand for our aluminium products, and we expect this trend to continue. The Group observed that a possible contributory factor of the decreased demand could be due to the trending relocation of business activities from Singapore across to Malaysia to take advantage of improved cross-border logistics, lower operating costs and investment incentives.”

Conclusion & Investment Recommendations

Overall Assessment: New Wave Holdings delivered improved top-line performance and narrowed losses for 1H FY2026. The PRC and Malaysia segments are driving growth, while Singapore faces headwinds. Gross margins improved and working capital remains healthy. However, recurring losses and lack of dividend remain a concern for equity holders.

• If you are currently holding this stock:
  Consider maintaining your position if you are optimistic about Malaysia and PRC growth and can tolerate ongoing losses and the absence of dividends. Monitor management’s ability to sustain margin improvements and further reduce losses. Be cautious of continued weakness in Singapore and external tariff risks.
• If you are not currently holding this stock:
  A wait-and-see approach may be prudent. There are promising signs in non-Singapore segments, but persistent losses, lack of dividends, and macroeconomic uncertainty suggest limited near-term upside. Investors seeking growth may find better opportunities elsewhere until a clear return to profitability and dividend resumption is signaled.

Disclaimer: This analysis is based strictly on the disclosed financial statements and corporate commentary. It does not constitute investment advice. Readers should consider their own risk tolerance and investment goals before making decisions.

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