Ley Choon Group’s 2025 AGM Signals Growth Momentum, Robust Order Book, and Prudent Expansion Strategy

Key Takeaways from the AGM That Every Retail Investor Must Know

Ley Choon Group Holdings Limited held its Annual General Meeting (AGM) on July 30, 2025, providing shareholders with crucial insights into the company’s latest financial results, strategic direction, and operational performance. With all resolutions passed by overwhelming majority, this AGM stands out for its clarity on growth prospects, dividend policy, order book updates, and management views on business expansion.

1. Strong Financial Performance and Dividend Declaration

• The company adopted its audited financial statements for the financial year ended March 31, 2025, confirming another year of steady revenue, which remained around S\$130 million for the past three years.
• More importantly for investors, Ley Choon declared a final tax exempt (one-tier) dividend of 0.3 Singapore cents per ordinary share for FY2025, signalling confidence in its cash flow and profitability.
• Gross margin for the year was just over 20%, a significant improvement over prior periods according to management responses.

2. Robust Order Book and Contract Wins

• The Group’s total order book stood at S\$342.5 million as of March 31, 2025. Management confirmed that updates on the order book, including new contract wins, would be provided in the upcoming half-year results for the period ending September 30, 2025.
• Ley Choon continues to win sizable contracts, predominantly with SP Group and the Land Transport Authority (LTA). Recent contracts announced in May and July 2025 are expected to contribute positively to earnings, though their impact on FY2026 earnings per share and net tangible assets per share is not expected to be material in the current financial year.
• Investors should watch for the next financial update, as significant new contracts could be price sensitive and potentially move the share price if they prove accretive.

3. Strategic Focus and Expansion Plans

• Management emphasized prudent bidding for tenders and maintaining a high proportion of in-house manpower (80%–90%), which helps control costs and improve margins.
• The company is focused on underground utilities infrastructure rather than building construction, meaning high-profile projects like Changi Terminal 5 are not material to Ley Choon’s pipeline.
• Future growth may come from maintenance-based and minor building modification projects, with a preference for recurring income. However, management stressed that there are currently no plans to significantly leverage or borrow funds for large-scale expansion, keeping financial risk in check.

4. Operational Resilience and Risk Management

• The company was not affected by the recent Public Utilities Board safety time-out following the Tanjong Katong sinkhole incident, as pipe-jacking contracts form only a small portion of its projects.
• Backlogs from contracts secured during the COVID-19 pandemic have now been fully cleared, reducing operational risk and uncertainty.

5. Board and Governance Updates

• All directors standing for re-election were returned to their posts, ensuring continuity in leadership and governance. The directors’ fees for FY2026 were approved at S\$230,000, to be paid quarterly in arrears.
• Foo Kon Tan LLP was re-appointed as auditors.
• Resolutions authorizing directors to issue new shares and administer the Ley Choon Performance Share Plan 2018 were passed, giving management flexibility to raise capital and incentivize staff as needed.

Potentially Price Sensitive Information

• While the declared dividend and robust order book signal a healthy outlook, the most potentially price-moving news lies in the upcoming financial results, which will include updated order book figures and the impact of recent contract wins. Investors should monitor these announcements closely.
• The company’s strategy of targeting recurring, maintenance-based projects and its cautious approach to leverage could drive future stability and upside, but also limits exposure to high-risk, high-reward opportunities.

Conclusion

Ley Choon Group’s AGM paints a picture of a business on solid footing, with prudent management, growing margins, a healthy order book, and a strong dividend profile. The next half-year results and possible new contract wins remain the key catalysts for share price movement.

Disclaimer:

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial adviser before making investment decisions. The author does not hold any position in Ley Choon Group Holdings Limited at the time of writing.

View Ley Choon Historical chart here