Nam Lee Pressed Metal FY2025 Results: Profit Doubles, Revenue Hits S$208.6m, Final Dividend of 3.0 Cents Proposed

Nam Lee Pressed Metal Industries Limited: FY2025 Financial Results Review

Nam Lee Pressed Metal Industries Limited has released its unaudited condensed interim consolidated financial statements for the full year ended 30 September 2025. The group delivered robust financial and operational performance, registering significant improvements in revenue and profitability. This article provides a detailed analysis of the key financial metrics, historical trends, dividends, management commentary, and relevant issues for investors.

Key Financial Metrics

Metric	2H FY2025 (Apr-Sep 2025)	1H FY2025 (Oct 2024-Mar 2025)	2H FY2024 (Apr-Sep 2024)	YoY Change	QoQ Change
Revenue (S\$’000)	109,054	99,541	101,812	+7.1%	+9.6%
Profit After Tax (S\$’000)	13,145	11,668	9,667	+36.0%	+12.7%
Earnings Per Share (Basic, cents)	5.43	4.82	4.00	+35.8%	+12.7%
Full Year Revenue (S\$’000)	208,595			+15.7% (vs FY2024: 180,273)	N/A
Full Year Profit After Tax (S\$’000)	24,813			+102.7% (vs FY2024: 12,241)	N/A
Full Year EPS (Basic, cents)	10.25			+102.6% (vs FY2024: 5.06)	N/A
Final Dividend per Share (cents)	3.0	–	1.5	+100%	N/A
Special Dividend per Share (cents)	0.0	–	0.5	-100%	N/A

Historical Performance Trends

Nam Lee delivered strong YoY improvements across all key metrics for FY2025. Revenue grew 15.7% to S\$208.6 million, driven by increased activity in both the construction and reefer container businesses. The company’s gross profit margin rose from 19.1% to 24.5%, reflecting better product mix and higher-margin contributions from the construction segment. Net profit more than doubled to S\$24.8 million, and EPS similarly improved by 102.6%. The final dividend of 3.0 cents per share is a substantial increase from the prior year’s 1.5 cents, though no special dividend was proposed this year (last year: 0.5 cents).

Directors’ Remuneration

Total compensation paid to key management personnel for FY2025 was S\$7.76 million, up from S\$4.36 million in FY2024. This includes S\$4.91 million paid to directors, S\$97,000 to advisors, and S\$2.76 million to other key management personnel. The increase was driven by higher provision for bonuses and remuneration, in line with the improved profit performance.

Balance Sheet and Cash Flow Highlights

Net Assets: S\$187.1 million (up from S\$168.0 million in FY2024).
Net asset value per share: 77.29 cents (prior year: 69.39 cents).
Cash and equivalents: S\$31.9 million (prior year: S\$30.8 million).
Loans and borrowings: S\$10.6 million (sharp reduction from S\$30.6 million in FY2024 due to repayments).
Operating Cash Flow: S\$28.0 million (up significantly from S\$1.1 million in FY2024).

Property, plant, and equipment decreased to S\$59.4 million due to ongoing depreciation and currency translation effects. Inventory and receivables levels were stable to slightly higher, reflecting the increased revenue. Contract assets also rose in line with higher construction billings. The company maintained a healthy liquidity position and reduced leverage.

Exceptional Earnings or Expenses

The notable spike in net profit and EPS was mainly attributed to higher revenue, an improved product mix, and reduced foreign exchange losses. Lower other operating expenses (-S\$1.4 million YoY) were primarily due to lower foreign currency losses. Administrative expenses rose due to increased bonus and remuneration provisions in line with profit growth.

Divestments, Fundraising, and Corporate Actions

There were no divestments, IPOs, share buybacks, or placements disclosed in the period under review. The company did not issue or cancel any treasury shares.

Related-Party Transactions and Unusual Fund Flows

Related-party transactions were limited to typical business arrangements, with all balances unsecured, non-interest bearing, and repayable on demand. No unusual fund flows were reported.

Macroeconomic and Industry Environment

Management highlighted strong construction demand in Singapore, especially from public and housing projects. The Building and Construction Authority (BCA) anticipates annual construction demand of S\$39-46 billion from 2026 to 2029. Nam Lee expects its building products (mild steel, stainless steel, UPVC) to benefit from these trends. The aluminium business segment also rebounded, with improved order flow expected to continue into the next year. However, management cautions that macroeconomic risks—such as global trade tensions, financial market volatility, and uncertainties in the US economy—could impact growth.

Management Commentary (Chairman’s Statement)

The report does not contain a separate Chairman’s Statement, but the management discussion is generally positive in tone, emphasizing robust demand, improved profitability, and the group’s commitment to operational efficiency and cost management.

Dividend Summary

Final dividend for FY2025: 3.0 cents per share (tax exempt, one-tier).
Previous year final dividend: 1.5 cents per share, special dividend of 0.5 cents per share.
Total annual dividend for FY2025: S\$7.26 million (prior year: S\$4.84 million).
Dividend subject to shareholder approval at the next AGM.

Outlook and Forecasted Events

The company expects to benefit from continued strong demand in the construction sector, especially in Singapore. The growth in aluminium and building products is likely to persist, provided macroeconomic risks do not materialize. Management remains focused on cost control, project execution, and productivity enhancements.

Conclusion and Investment Recommendations

Overall, Nam Lee Pressed Metal Industries delivered a strong set of results for FY2025, with significant improvements in revenue, profitability, and cash generation. The balance sheet is robust, leverage has been reduced, and the company is well-positioned to benefit from a favorable construction market in Singapore.

If you are currently holding the stock: The outlook and fundamentals appear strong, supported by a higher dividend and robust cash flow. Consider holding your position to benefit from ongoing improvements and potential dividend growth, while monitoring macroeconomic developments and sector demand.
If you are not currently holding the stock: The substantial YoY improvement, rising dividend, and solid industry outlook make Nam Lee an attractive candidate for consideration. However, as always, prospective investors should monitor for macroeconomic risks and ensure the investment aligns with their risk tolerance and portfolio objectives.

Disclaimer: This analysis is based solely on the contents of Nam Lee’s FY2025 financial report. It is not investment advice. Investors should conduct their own due diligence and consider their personal financial circumstances before making investment decisions.