TEHO International Inc Ltd. HY2026 Financial Analysis
TEHO International Inc Ltd., a Singapore-listed company operating primarily in marine & offshore equipment, water treatment, property development, and real estate consultancy, has released its unaudited consolidated interim financial statements for the six months ended 31 December 2025 (HY2026). The results provide insight into the Group’s operating performance, financial position, and strategic direction during a period of global economic uncertainty.
Key Financial Metrics and Performance Comparison
| Metric |
HY2026 (6M ended Dec 2025) |
Previous Half-Year (6M ended Jun 2025) |
HY2025 (6M ended Dec 2024) |
YoY Change vs HY2025 |
QoQ Change vs Previous Half-Year |
| Revenue |
S\$32.68m |
– |
S\$32.12m |
+1.8% |
N/A |
| Gross Profit |
S\$11.73m |
– |
S\$11.92m |
-1.6% |
N/A |
| Profit Before Tax |
S\$0.997m |
– |
S\$1.40m |
-28.9% |
N/A |
| Net Profit |
S\$0.548m |
– |
S\$1.10m |
-49.9% |
N/A |
| EPS (cents) |
0.23 |
– |
0.47 |
-51.1% |
N/A |
| Dividend per Share (cents) |
Final: 0.10 (Paid) |
– |
Final: 0.10 (Paid) |
No Change |
N/A |
| Net Asset Value per Share (cents) |
10.72 |
10.57 |
10.22 |
+4.9% |
+1.4% |
Segment Performance and Historical Trends
- Marine & Offshore Segment: Revenue rose by S\$1.6m (+5.5%), driven by increased orders for newly-built vessels and completion of contractual orders. Gross profit was S\$11.0m, with a margin decline (35.1% vs 36.3% prior) due to competitive pricing pressures.
- Others Segment: Revenue dropped S\$1.0m (-43.3%), mainly from water treatment (-S\$0.9m) and property consultancy (-S\$0.1m). Gross profit from this segment totaled S\$0.7m.
- Gross Margin: Group margin slipped from 37.1% to 35.9%, reflecting cost pressures and competitive dynamics.
Exceptional Items and Related Party Transactions
- Exceptional Expenses: Notable items included S\$0.8m in depreciation, S\$0.3m in foreign exchange losses, and S\$0.1m in professional fees.
- Share Awards: 500,000 shares were issued under the TEHO Performance Share Plan, modestly diluting existing shareholders.
- Related Party Transaction: S\$161,040 paid in office rental to Asdev Investments Pte. Ltd., controlled by the CEO.
Financial Position and Cash Flows
- Non-current Assets: Down S\$1.3m, mainly due to depreciation and derecognition of right-of-use assets.
- Current Assets: Up S\$1.8m, driven by inventory build (+S\$1.1m) and higher cash (+S\$0.8m).
- Non-current Liabilities: Down S\$3.0m, reflecting reclassification of loans to current liabilities.
- Current Liabilities: Up S\$3.1m, due to reclassification of loans and higher tax liabilities.
- Cash Flow: Operating cash flow dropped sharply (S\$0.4m vs S\$2.4m prior) due to lower profits and inventory build-up; investing outflow was minor (S\$0.1m), financing inflow (S\$0.4m) mainly from loan drawdowns.
Directors’ Remuneration
- Salaries and benefits for key management: S\$1.2m for HY2026 (up from S\$1.1m in HY2025), including S\$93,333 in directors’ fees.
Dividend Policy
- No interim dividend was declared for HY2026. Only the final dividend (S\$0.001 per share; S\$235,425) was paid, unchanged from HY2025.
- The Board cited prudence and cash flow requirements as the reason for withholding interim dividends.
Macroeconomic & Industry Commentary
- Global trade uncertainties, tariffs, and supply chain disruptions continue to pose challenges. The Group is focused on cost management and operating discipline amid a cautious outlook.
Chairman’s Statement
“On behalf of the Board of Directors of the Company, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the financial statements for the six-month period ended 31 December 2025 to be false or misleading in any material aspect.”
The tone is neutral and cautious, reflecting a focus on transparency and prudence rather than optimism or concern.
Conclusion & Recommendations
Overall Assessment: TEHO International delivered modest revenue growth but suffered significant declines in profit and EPS, largely from margin compression and weaker performance in non-core segments. Cash flow from operations shrank, though net asset value per share increased slightly due to share issuance and retained earnings. The Group is executing prudent cost management amid global uncertainty, but faces competitive and margin pressures.
- For Current Holders: Consider holding if you believe in the company’s long-term prospects in marine & offshore—especially if global trade improves. However, monitor profit margins and cash flows closely, as operational challenges persist and dividend policy remains conservative.
- For Potential Investors: Exercise caution. The stock’s fundamentals are mixed: modest revenue growth but declining profits and earnings, and no interim dividend. Entry may be justified only if you expect sector recovery or further improvement in operational discipline.
Disclaimer: This analysis is based solely on the company’s published financial report and does not constitute investment advice. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.
View Teho Intl Historical chart here
