VibroPower Corporation Limited: Interim Financial Analysis for 1H 2026

VibroPower Corporation Limited, a Singapore-based provider of power generators and related engineering solutions, has released its interim financial statements for the first half of the financial year ending 30 September 2025 (“1H 2026”). This analysis summarizes the company’s key financial metrics, performance trends, corporate actions, and outlook, providing investors with a concise overview of VibroPower’s recent developments.

Key Financial Metrics and Performance Comparison

Historical Performance Trends

• Revenue saw a substantial increase of 108% YoY to S\$6.57 million in 1H 2026, attributed to a higher volume of project deliveries.
• Gross profit margin improved from 22% to 32%, reflecting better project execution and completion of higher-margin contracts.
• Net profit swung from a loss (S\$1.46 million) in 1H 2025 to a profit of S\$0.61 million in 1H 2026, indicating a marked turnaround.
• EPS recovered sharply to 0.83 cents after a negative result last year.
• No dividends were declared, continuing the previous period’s trend as the company prioritizes working capital conservation.

Exceptional Items and Corporate Actions

• All impairment on contract assets relating to litigation claims was fully provided for by March 2025, with no further adverse impact in 1H 2026.
• No asset revaluations, IPOs, fundraisings, or major asset sales occurred during this period.
• The company disposed of its interest in Shanxi Weineng Coal Mine Gas Development Co., Ltd. for S\$5.48 million in 1H 2025, closing out the discontinued operations segment.
• Related-party transactions were notable, particularly S\$871,000 in purchases from Mason Industries Pte Ltd, controlled by a relative of a director and substantial shareholder.
• No share buybacks, dilution, or placements reported.

Review of Financial Position

• Inventories increased by S\$0.20 million, reflecting materials purchased for future projects.
• Trade and other receivables decreased by S\$1.6 million, mainly due to improved collections.
• Contract assets rose by S\$2.7 million, consistent with higher unbilled progress claims from increased project activity.
• Loans and borrowings declined slightly, following repayments, while payables and accruals increased by S\$0.8 million due to higher purchases.

Cash Flow Trends

• Operating cash inflow was S\$0.47 million, offset by a net outflow from financing activities of S\$0.47 million, resulting in stable cash and cash equivalents.
• There were no significant swings in cash position during the period.

Industry Trends and Outlook

• The operating environment remains competitive but is gradually improving, with robust construction demand in Singapore driven by public housing, infrastructure, industrial, and data center projects.
• Cost pressures persist due to elevated commodity prices (especially copper) and forex volatility, potentially impacting margins.
• Intensified price competition and cost sensitivity among customers may keep profit margins under pressure.
• The Group maintains a healthy order book and aims to secure new orders, focusing on design–build contracts and cash-flow management to sustain operational stability.
• Development of a biomass power project in Malaysia is ongoing, which may support future growth.

Dividend Policy

• No dividend was declared for 1H 2026 or the prior period. The Board stated: “No dividend has been declared or recommended during the period under review. In view of the challenging environment, the Board considers it prudent to conserve funds for working capital purposes.”

Chairman’s Statement

“The Group’s performance has improved, demonstrating the resilience of its operations. The Group currently maintains a healthy order book and will continue to focus on securing new orders to strengthen its order book and sustain a healthy project pipeline. Key priorities include pursuing design–build contracts that provide value-added, customised solutions to customers and enhancing cash-flow management to support operational stability and project execution. In parallel, the Group continues to develop its biomass power project in Malaysia. These initiatives, along with ongoing efforts to secure new orders, are expected to enhance overall Group performance and position the Group for long-term growth.”

The tone is cautiously optimistic, emphasizing operational resilience, a strong order book, and strategic initiatives for long-term growth.

Related-Party Transactions

• Significant purchases and subcontractor costs were incurred with Mason Industries Pte Ltd, a company controlled by a family member of VibroPower’s director and controlling shareholder. Investors should monitor potential conflicts of interest and governance risks.

Conclusion and Investment Recommendations

Overall, VibroPower Corporation Limited has delivered a strong turnaround in 1H 2026, with significant improvements in revenue, gross profit, and net earnings. The strategic focus on project execution, cash management, and healthy order book supports a positive outlook, though persistent cost pressures and competitive challenges remain.

• If you currently hold VibroPower shares: The company’s improved financial performance, solid order book, and prudent cash management suggest maintaining your position, but stay vigilant for cost volatility and competitive risks. Watch for sustained margin improvements and order book growth in upcoming quarters.
• If you do not currently hold VibroPower shares: The turnaround and positive outlook could present an attractive entry point, especially if the company maintains momentum and navigates industry challenges effectively. However, consider waiting for further confirmation of margin sustainability and continued order book expansion before initiating a position.

Disclaimer: This analysis is based solely on information disclosed in the company’s interim financial report. It does not constitute investment advice. Investors should conduct further due diligence and consider their own financial circumstances before making investment decisions.

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