Hosen Group Ltd. FY2025 Financial Analysis: Key Insights for Investors
Hosen Group Ltd. (“the Group”), a Singapore-listed company focused on importing, distributing, and wholesaling fast-moving consumer goods, released its unaudited condensed interim consolidated financial statements for the full year ended 31 December 2025. This article breaks down the key financial metrics, trends, and notable disclosures to provide investors with a clear, data-driven perspective on the Group’s recent performance and outlook.
Key Financial Metrics and Performance Trends
| Metric |
2H 2025
(Current Half) |
1H 2025
(Previous Half) |
2H 2024
(Same Half Last Year) |
YoY Change |
HoH Change |
| Revenue (S\$’000) |
33,951 |
35,609 |
35,077 |
-3.2% |
-4.7% |
| Net Profit Attributable to Owners (S\$’000) |
2,041 |
1,166 |
1,385 |
+47.4% |
+75.0% |
| EPS (cents) |
0.63 |
0.36 |
0.43 |
+46.5% |
+75.0% |
| Dividend per Share (cents) |
0.2 (proposed) |
– |
0.2 |
0% |
N/A |
| Net Asset Value per Share (cents) |
11.91 |
– |
10.91 |
+9.2% |
N/A |
Summary of Historical Performance
- Revenue: Declined 4.4% YoY to S\$69.56 million in FY2025, primarily due to lower sales in Singapore and Malaysia, partially offset by stronger overseas sales. The decrease in Singapore was attributed to the timing of Chinese New Year, which fell earlier in FY2025 compared to the previous year.
- Profitability: Despite lower revenue, net profit attributable to owners more than doubled to S\$3.20 million (FY2025) from S\$1.97 million (FY2024), driven by improved gross margins (25.08% vs. 23.47%) and lower selling/distribution and other expenses.
- Gross Profit: Increased to S\$17.45 million (from S\$17.08 million), with margin improvement supported by a stronger local currency and better cost management.
- Dividends: The Board proposed a final tax-exempt dividend of 0.2 Singapore cents per share (S\$650,000), unchanged from FY2024, payable on 29 May 2026 (subject to approval).
- Net Asset Value: Rose to 11.91 cents per share, reflecting stronger retained earnings and a solid balance sheet.
Other Notable Disclosures
- Cash Flow: Operating cash flow was strong at S\$6.61 million; major outflows included S\$3.99 million for investment in property, plant, and equipment (notably, construction of a new factory in Malaysia).
- Asset Changes: Property, plant, and equipment increased by S\$3.66 million, reflecting ongoing capital investments. Inventories rose slightly in anticipation of Chinese New Year sales in 2026.
- Receivables & Payables: Trade and other receivables decreased by S\$2.83 million due to lower year-end sales. Payables increased mostly due to accruals for staff and director remuneration.
- Borrowings: Total bank borrowings rose modestly to S\$8.11 million, mainly from a new term loan for the Malaysian property, offset by repayments and reduction in bills payable.
- Related Party Transactions: Remained immaterial, with no significant interested person transactions (IPT) or related-party sales/purchases exceeding S\$100,000.
- Divestments & Fundraising: No asset sales, IPOs, or placements occurred during the year. There were no changes to share capital, treasury shares, or subsidiary holdings.
- Directors and Key Management Pay: Administrative expense increase was attributed in part to higher staff and directors’ remuneration, reflecting improved group performance.
- Exceptional Items: FY2024 included a one-off gain from the disposal of a subsidiary, absent in FY2025, which contributed to the YoY decrease in other income.
- Forecasts and Outlook: The Group expects sales demand to be impacted by slower economic growth, rising costs, and ongoing global uncertainties. Management is focused on cost control, operational efficiency, and exploring new opportunities to navigate the challenging environment.
Chairman’s Statement
The Chairman’s Statement was not included in the report.
Significant Events and Risks
- No mention of legal disputes, natural disasters, or policy/tax changes that would significantly impact the business.
- Macroeconomic risks highlighted include economic slowdown and cost pressures.
Conclusion and Investor Recommendations
Overall Assessment: The Group delivered a resilient set of results in FY2025. Despite top-line pressure from subdued regional demand, margin management and cost discipline led to a significant YoY increase in profitability and net asset value. The balance sheet remains robust, with prudent gearing and healthy cash flow generation supporting ongoing investments and a steady dividend.
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If you are currently holding the stock:
The improving profit trend, stable dividend, and strengthening asset base suggest the stock remains a solid hold. Investors may wish to continue holding, monitoring for execution on growth and cost initiatives as the Group navigates a challenging external environment.
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If you are not currently holding the stock:
With the recent profit rebound, strong cash flows, and an unchanged dividend, the stock could warrant further research for investors seeking stable, defensive consumer exposure in Southeast Asia. However, near-term sales growth may remain subdued due to macroeconomic headwinds, so entry should be staged and risk-appetite considered.
Disclaimer: This analysis is based strictly on the company’s latest published financial report and does not constitute financial advice or an explicit buy/sell recommendation. Investors should consider their own risk profile and consult a licensed advisor before making investment decisions.
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