HG Metal Manufacturing Limited: Key Takeaways from the 2026 Annual General Meeting

Date: 23 January 2026
Location: 28 Jalan Buroh, Singapore 619484

1. Board and Management Updates

• The AGM was chaired by Mr Ong Hwee Li (Independent Non-Executive Chairman).
• Directors present included Ms Xiao Xia (Executive Director & CEO), Ms Ong Lizhen, Daisy, and Ms Ng Chuey Peng (both Independent Non-Executive Directors).
• The Chief Financial Officer (Ms Sharon Tay), Company Secretarial Agent, and External Auditors (Ernst & Young LLP) were also introduced.

2. Shareholder Engagement and Key Queries

• Tuas View Circuit Expansion:
  • Estimated S\$15–20 million investment is solely for new equipment and business expansion, and not part of property acquisition costs.
  • Production capacity at the Tuas site is targeted to reach 180,000 metric tons annually within 3–5 years, with scalability depending on market demand and operational stability.
  • Management is cautious of over-aggressive ramp-up due to risks such as raw material procurement, working capital needs, steel price volatility, and margin pressures from the BCA index.
• Operational Improvements:
  • Since taking over operations three years ago, monthly production has increased over threefold from 5,000–6,000 metric tons to peak levels.
  • Loss-making overseas operations have been divested; the Group is now profitable for FY2024 and FP2025.
  • Land lease issues due to JTC restrictions prompted the search for alternative land in Tuas. If approvals are secured, production can expand significantly; otherwise, current capacity will be sustained.
• Inventory Management:
  • Inventory is managed on a just-in-time basis with reduced holding levels, mitigating risks of overbuying amid expansion.
  • Inventory levels remain sensitive to steel price changes.
• Cost Discipline and Efficiency:
  • Management emphasized cost-saving measures, such as reusing vehicles and holding meetings internally.
  • Staffing has not increased in line with sales growth, resulting in lower per-unit production costs and improved efficiency.
• Competition and Customer Acquisition:
  • Entry of new Chinese construction companies is viewed as an opportunity, as many are customers rather than competitors.
  • The company’s competitive edge lies in service quality, not just pricing; value-added services foster customer loyalty even at higher prices.
• Investor Relations:
  • External IR consultants have been appointed since 2025, reflecting renewed commitment to shareholder engagement and market guidance.
• Use of Funds:
  • Of the approximately S\$70 million in company funds, allocations went to investments, property, and business expansion, with the remainder held as working capital.
  • Management is considering partial financing for the Tuas property to optimize capital structure.
• Industrial Focus & Outlook:
  • Management remains optimistic about growth opportunities for HG Metal Manufacturing in the current environment.
• Eden Flame Sdn. Bhd. Investment:
  • Investment of RM18 million in Johor Bahru-based Eden Flame is expected to add 500,000 metric tons of annual capacity.
  • Board remains cautious and selective about future investments to balance capital allocation and risk.

3. Key Resolutions and Voting Outcomes

• All resolutions were passed with overwhelming support, including:
  • Adoption of audited financial statements for period ended 30 September 2025.
  • Approval of final dividend of 1.5 Singapore cents per share.
  • Re-election of Mr Ong Hwee Li (Independent Chairman) and Ms Xiao Xia (Executive Director & CEO).
  • Approval of Directors’ fees up to S\$224,070 for FY ending 30 September 2026.
  • Re-appointment of Ernst & Young LLP as auditors.
  • Mandate to allot and issue new shares up to 50% of issued capital (20% non-pro rata).
  • Renewal of share purchase mandate (authorizing buybacks up to 3% of issued shares).
  • Renewal of Interested Person Transactions mandate.
• Poll results: Most resolutions had 100% or near 100% votes for, reflecting strong shareholder confidence in the management and strategy.

4. Potentially Price-Sensitive and Noteworthy Points

• Production Expansion and Capital Allocation:
  • Significant investment in production expansion at Tuas could translate to higher future revenues and economies of scale, subject to market demand and regulatory approvals.
  • Profitable turnaround after divesting loss-making overseas operations signals improved business fundamentals.
  • Upcoming capacity addition from Eden Flame Sdn. Bhd. in Malaysia further enhances growth prospects and regional footprint.
• Share Buyback and Share Issue Mandates:
  • Renewal of share buyback mandate (up to 3%) and authority to issue new shares (up to 50% of capital) provide flexibility for capital management, potentially supporting share price and funding future growth.
• Dividend Declaration:
  • Approval of a final dividend signals management’s confidence in cash flow and profitability, which may positively influence investor sentiment.
• Investor Relations Focus:
  • Appointment of external IR consultants and increased emphasis on shareholder communication could enhance transparency and market perception.
• Cost and Operational Discipline:
  • Ongoing efforts to optimize costs, manage inventory efficiently, and maintain productivity with lean staffing are positive for margins and competitiveness.

5. Conclusion

HG Metal Manufacturing Limited’s 2026 AGM highlighted a company in transition, with renewed profitability, clear expansion plans, prudent capital allocation, and a focus on operational efficiency. The approval of key mandates and the dividend, combined with strong shareholder support, suggest positive momentum. Investors should watch for developments regarding the Tuas land approval, execution of expansion plans, and continued improvements in capital structure, all of which could have material impacts on future earnings and share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult professional advisors before making any investment decisions.

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