Soon Lian Holdings Limited: FY2025 Financial Results and Analysis
Soon Lian Holdings Limited, a Singapore-listed supplier of aluminium alloy materials, has released its unaudited financial statements for the six months and full year ended 31 December 2025. This report provides a detailed analysis of the company’s financial performance, dividend announcements, and outlook for investors.
Key Financial Metrics
| Metric |
2H FY2025 |
1H FY2025 |
2H FY2024 |
YoY Change (2H) |
QoQ Change |
| Revenue (S\$’000) |
37,568 |
41,830 |
39,503 |
-4.9% |
-10.2% |
| Profit After Tax (S\$’000) |
2,331 |
2,450 |
3,667 |
-36.4% |
-4.9% |
| Earnings Per Share (cents) |
2.16 |
2.27 |
3.40 |
-36.5% |
-4.8% |
| Gross Profit (S\$’000) |
6,348 |
6,905 |
8,919 |
-28.8% |
-8.1% |
| Gross Profit Margin (%) |
16.9 |
16.5 |
22.6 |
-5.7pp |
+0.4pp |
| Dividend per share (cents) |
0.4 (proposed) |
N/A |
0.3 |
+33.3% |
N/A |
Historical Performance Trends
For the full year FY2025, Soon Lian Holdings achieved revenue growth of 11% to S\$79.4 million, driven by higher sales volumes in precision engineering and marine segments. However, despite this revenue increase, net profit fell by 17.4% to S\$4.8 million, and gross profit dropped by 11.9% to S\$13.3 million. The gross profit margin contracted from 21.2% to 16.7%, primarily due to a significantly lower reversal for inventories obsolescence (S\$0.6 million vs S\$2.8 million in FY2024).
In 2H FY2025, revenue declined 4.9% quarter-on-quarter, with profit after tax dropping sharply by 36.4%. This was attributed to reduced sales volume to marine and stockists/traders customers, partially offset by increased precision engineering sales.
Exceptional Items
- Impairment Reversal: The Group recorded a reversal of allowance for impairment loss on trade receivables of S\$0.5 million in FY2025, compared with a S\$1.9 million loss allowance in FY2024.
- Foreign Exchange: Other expenses were nil in FY2025 due to net foreign exchange gain, compared to a loss in the prior year.
- Dividend: A final dividend of 0.4 Singapore cent per share has been proposed for FY2025, up from 0.3 cents in FY2024.
Statement from the Executive Chairman
“Looking ahead, the operating environment over the next 12 months remains uncertain amid evolving global trade policies and ongoing geopolitical tensions. Recent tariff developments have added volatility to global trade flows and supply chain dynamics. Notwithstanding these uncertainties, macroeconomic indicators in several of the Group’s key markets have remained constructive, with solid GDP growth recorded in 2025, supported by sustained domestic demand and export activity. The precision engineering segment may face headwinds should trade-related developments affect customer demand or cross-border supply chains, while the exposure of the Group’s other business segments is currently assessed to be limited. The marine segment continues to be supported by a healthy order pipeline and is expected to remain resilient in the near term. The Group will maintain a prudent and disciplined approach in managing costs and capital expenditure. Supported by a strengthened balance sheet, the Group remains well-positioned to navigate potential volatility while remaining responsive to market opportunities.”
Tone: The statement is cautious yet constructive, acknowledging industry risks but highlighting resilience and prudent management.
Dividends
The directors have proposed a final dividend of 0.4 Singapore cent per share, tax-exempt (one tier), subject to shareholder approval. This represents a 33% increase from the previous year’s 0.3 cent dividend.
Cash Flows and Balance Sheet
- Operating Cash Flow: Net cash used in operating activities was S\$2.2 million, reflecting increased inventories and working capital requirements.
- Investing Cash Flow: Net cash used in investing activities was S\$0.6 million, primarily for property, plant, and equipment purchases.
- Financing Cash Flow: Net cash generated from financing activities was S\$3.3 million, driven by net proceeds from borrowings.
- Net Asset Value: NAV per share rose to 44.4 cents from 40.3 cents a year ago.
Significant Events and Outlook
- No forecast or prospect statements were previously disclosed.
- Operating environment is uncertain due to global trade and geopolitical tensions.
- The marine segment is expected to remain resilient, while precision engineering may face headwinds.
- No material related party transactions or significant legal disputes reported.
- No acquisitions, divestments, or asset sales disclosed.
Director Remuneration and Related-Party Disclosure
- No specific director pay/remuneration details provided.
- Two relatives of controlling shareholders hold managerial positions in SL Metals Pte. Ltd., a wholly-owned subsidiary.
Conclusion and Investment Recommendations
Overall, Soon Lian Holdings delivered revenue growth and maintained a strong balance sheet in FY2025, but profit margins declined and net profit fell, largely due to lower inventory reversals and increased expenses. The proposed higher dividend is a positive signal, but the cautious outlook and margin compression suggest that investors should remain vigilant amid volatility.
- If you currently hold the stock: Consider maintaining your position if you are comfortable with volatility and the company’s prudent approach, but monitor margin recovery and operational risks closely.
- If you do not currently hold the stock: Wait for evidence of margin stabilization or improvement in profitability before initiating a position. The stock could be attractive if management successfully delivers on cost controls and navigates industry challenges.
Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult a qualified financial adviser before making any investment decisions.
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