Hor Kew Corporation Limited FY2025 Financial Analysis
Hor Kew Corporation Limited, a Singapore-listed company specializing in prefabrication, construction, and property investment, released its unaudited financial statements for the six months and full year ended 31 December 2025. Below is a structured analysis of the company’s key metrics, performance trends, and outlook for investors.
Key Financial Metrics
| Metric |
2H FY2025 |
1H FY2025 |
2H FY2024 |
YoY Change |
QoQ Change |
| Revenue |
\$36.4m |
\$33.5m |
\$47.6m |
-24% |
+8.6% |
| Gross Profit |
\$9.5m |
\$15.5m |
\$23.4m |
-60% |
-38.7% |
| Profit Before Tax |
\$6.8m |
\$6.7m |
\$12.0m |
-43% |
+1.5% |
| EPS (Basic, cents) |
9.34 |
8.35 |
23.15 |
-63% |
+11.9% |
| Dividend (cents/share) |
1.5 |
n/a |
3.0 (FY24) |
-50% |
n/a |
| Net Asset Value/Share |
\$1.82 |
n/a |
\$1.66 |
+9.6% |
n/a |
Performance Trends and Analysis
- Revenue: Full year revenue fell 16% YoY (\$69.9m in FY2025 vs \$82.9m in FY2024), mainly due to lower delivery volumes of prefabricated building components. 2H revenue was down 24% YoY, but up 8.6% QoQ from 1H2025.
- Gross Profit: Gross profit margin shrank from 40.0% in FY2024 to 35.8% in FY2025 due to increased competition. Gross profit dropped sharply YoY and QoQ.
- Profit Before Tax: PBT dropped significantly YoY, with 2H2025 at \$6.8m versus \$12.0m in 2H2024. The full year PBT was \$13.6m, down 15% from FY2024.
- Earnings Per Share: Basic EPS for FY2025 was 17.69 cents, down from 26.38 cents in FY2024 (-33%). 2H2025 EPS was 9.34 cents, sharply lower YoY.
- Dividend: Proposed final dividend for FY2025 is 1.5 cents/share, half the 3.0 cents/share paid for FY2024.
- Net Asset Value: NAV per share increased to \$1.82 (FY2025) from \$1.66 (FY2024), reflecting asset growth and retained earnings.
Statement of Financial Position
- Total Assets: Increased sharply by \$71.8m to \$226m, driven by \$58.8m in new lease and machinery acquisitions.
- Total Liabilities: Rose by \$63.3m to \$131.2m, mainly due to new financing for a production facility lease.
- Shareholders’ Equity: Up \$8.5m to \$94.8m, with comprehensive income offsetting dividend payments.
- Cash & Cash Equivalents: Ended at \$8.4m, with overall cash flow slightly negative due to high capital expenditure.
Exceptional Items and Other Notable Points
- Impairment: Net impairment gain of \$1.2m in FY2025 versus a net loss of \$8.3m in FY2024 after review of receivables. Management reversed \$1.2m in trade receivables impairment, signaling improved credit control.
- Asset Revaluation: Investment properties recorded a fair value gain of \$0.3m, with external valuation at year end.
- Capital Expenditure: Large increase (\$63.7m in FY2025 vs \$2.2m in FY2024) due to new lease for production facility at 33 Kaki Bukit Road 6.
- Directors’ Remuneration: Directors’ fees increased by \$0.5m YoY, reflecting higher compensation.
- No share buybacks, placements, or related party transactions.
- No significant legal disputes, disasters, or macroeconomic shocks disclosed.
Dividend Summary
- FY2025 Proposed Dividend: 1.5 cents/share (subject to AGM approval).
- FY2024 Dividend: 3.0 cents/share paid in May 2025.
- Dividend payout is lower in FY2025, reflecting reduced profits.
Industry Trends and Outlook
The company notes strong demand in the Singapore construction industry, with order books remaining robust. Management expects this trend to continue in the coming year, supported by macroeconomic stability and ongoing infrastructure needs.
Chairman’s Statement
There is no explicit Chairman’s Statement in the report; however, the Board confirms the accuracy of the financial statements and provides a positive tone regarding demand and future business conditions.
Conclusion and Investment Recommendations
Hor Kew Corporation’s performance for FY2025 shows a decline in revenue, profits, and dividend payout compared to FY2024, primarily because of lower delivery volumes and increased competition. However, the company is investing for future growth, with significant capital expenditure and strong order books, suggesting a neutral to cautiously optimistic outlook.
- If you are currently holding the stock: Consider holding your position if you have a medium- to long-term outlook, as the company is investing in new production capacity and expects strong industry demand. However, monitor margins and dividend policy closely.
- If you are not currently holding the stock: Consider waiting for further clarity on earnings recovery and margin improvement before initiating a position. The lower dividend and reduced EPS may signal caution, but asset growth and industry demand are positive factors.
Disclaimer: This analysis is based strictly on information from the company’s published financial statements. It does not constitute investment advice. Investors should conduct their own due diligence and consider their risk tolerance and investment objectives before making any decisions.
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