Thakral Corporation Ltd: 1H2025 Results Analysis
Thakral Corporation Ltd has reported a striking set of results for the first half of 2025, propelled by a substantial gain from the GemLife IPO, robust growth in its Lifestyle segment, and continued expansion across key geographies. This analysis reviews the company’s latest financial performance, highlights exceptional items, and provides actionable recommendations for investors.
Key Financial Metrics
| Metric |
1H2025 |
1Q2025 |
1H2024 |
YoY Change |
QoQ Change |
| Revenue (S\$ mil) |
160.5 |
N/A |
128.4 |
+25% |
N/A |
| Gross Profit (S\$ mil) |
26.8 |
N/A |
22.5 |
+19.2% |
N/A |
| Net Attributable Profit (S\$ mil) |
109.3 |
N/A |
10.8 |
+912.2% |
N/A |
| EPS (S\$) |
Not disclosed |
N/A |
Not disclosed |
N/A |
N/A |
| Dividend per Share (cents) |
3.0 |
N/A |
4.0 (FY2024 full year) |
N/A |
N/A |
| Net Asset Value per Share (S\$) |
2.12 |
1.32 |
N/A |
N/A |
+60.6% |
Exceptional Earnings and Asset Revaluation
The exceptional spike in net profit and net asset value is almost entirely due to the fair valuation gain of S\$148.2 million recognized upon the IPO of GemLife, the group’s associate in the over-50s lifestyle resort sector. This one-off gain contributed S\$102.4 million after tax to the bottom line, representing an extraordinary event unlikely to recur every period.
Segmental Performance Highlights
- Lifestyle Segment: Accounted for 98% of revenue in 1H2025, up 26% YoY. Growth was driven by expansion in beauty and fragrance distribution, and strong momentum in DJI drone products, especially in Greater China and India.
- Investment Segment: Segment profit soared due to the GemLife IPO gain. Excluding this, regular contributions were stable, and revenue was lower due to the absence of investment income from previously sold debt notes.
Geographical Performance
- Greater China: Revenue up 22% YoY, led by beauty and fragrance expansion.
- South Asia (India): Revenue up 30% YoY, with DJI products gaining bestseller status on Amazon India and Flipkart.
- North America: Growth from expansion in building materials and trade products.
Dividend and Shareholder Returns
- Interim Dividend: 3 cents per share declared for 1H2025. The annualized dividend yield stands at 3.6% based on the 30 June 2025 share price and an annualized payout of 5.0 cents.
- Total Shareholder Return: Over the last five years, total shareholder return was 275%, with an annualized return of 39.13% (including dividends reinvested).
- Special Dividends: The company has paid special dividends in recent years, reflecting strong cash generation from exceptional events.
Balance Sheet & Capital Position
| Metric |
30 Jun 2025 |
31 Dec 2024 |
Change (%) |
| Cash & Bank Balances (S\$ mil) |
11.1 |
12.7 |
-12.4% |
| Financial Assets at Fair Value (S\$ mil) |
290.7 |
67.9 |
+328.3% |
| Associates (S\$ mil) |
64.4 |
129.7 |
-50.4% |
| Total Assets (S\$ mil) |
522.7 |
359.5 |
+45.4% |
| Total Debt (S\$ mil) |
73.3 |
63.5 |
+15.3% |
The sharp rise in financial assets and decline in associates reflects the reclassification of GemLife from an associate to a financial asset post-IPO.
Major Corporate Actions and Events
- GemLife IPO: Australia’s largest IPO of 2025 (A\$1.67bn market cap). Thakral raised A\$750m and now holds a 16.8% post-IPO stake. The gain from revaluation at IPO price accounted for most of the profit surge.
- Business Expansion: New initiatives in India, including Nespresso distribution, drone manufacturing (Bharat Skytech), and software/data solutions (Skylark Drones).
- Japan Asset Performance: Osaka commercial properties achieved 98% average occupancy.
- Gurugram Real Estate: Plans for ~21 acres of mixed-use development in India’s fast-growing luxury real estate market, reflecting a focus on recurring and capital growth assets.
Historical Performance Trends
Thakral has demonstrated a strong upward trajectory in both net profit and return on equity (ROE) over the last five years, with a notable spike in 1H2025 due to the GemLife IPO. Dividend payments have been consistent, including regular and special dividends, signifying management’s commitment to shareholder returns.
Outlook
The report signals an overall positive outlook, with the company well-positioned for continued growth in its core Lifestyle business and recurring income from investment properties. However, investors should note that the extraordinary profit from the GemLife IPO is a one-off event; going forward, normalized earnings may revert to pre-IPO levels barring new exceptional gains.
Investor Recommendations
-
If you are currently holding Thakral shares:
The company’s fundamentals remain robust, and it continues to deliver on its growth strategy. However, with the exceptional GemLife gain now priced in and future periods likely to see normalized profits, holders should review their portfolios to ensure expectations are aligned. If seeking stable dividends and long-term exposure to Asian consumer and real estate growth, continued holding is justified.
-
If you are not currently holding Thakral shares:
Prospective investors should be aware that the recent share price and valuation have been significantly boosted by a non-recurring event. Entry at current levels may expose investors to the risk of earnings normalization. A prudent approach would be to monitor for sustained operational growth and attractive entry points, particularly if the company executes further strategic initiatives or if the share price consolidates.
Disclaimer: This analysis is based solely on the information disclosed in Thakral Corporation Ltd’s 1H2025 results presentation. It does not constitute financial advice. Investors should consider their own investment objectives and consult a qualified advisor before making investment decisions.
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