HGH Holdings Ltd. 2025 Financial Review: Strong Recovery and Growth Momentum
HGH Holdings Ltd. released its unaudited results for the six months and full year ended 31 December 2025. The report shows a robust turnaround and significant growth across key financial metrics, driven by new plant capacity and a surge in construction demand. Below, we analyze the key numbers, business trends, and management commentary to help investors understand the company’s outlook.
Key Financial Metrics & Comparative Performance
| Metric |
2H 2025 |
1H 2025 |
2H 2024 |
YoY Change |
QoQ Change |
| Revenue (S\$’000) |
30,509 |
24,135 |
12,808 |
+138.3% |
+26.4% |
| Operating Profit/(Loss) After Tax (S\$’000) |
3,471 |
1,729 |
706 |
+391.6% |
+100.7% |
| EPS (Basic, SGD cent) |
0.20 |
0.09 |
0.04 |
+400% |
+122.2% |
| Net Asset Value per Share (SGD cent) |
2.88 |
2.74 |
2.58 |
+11.6% |
+5.1% |
| Dividend (S\$) |
0 |
0 |
0 |
No Change |
No Change |
Historical Performance Trends
- Revenue: Full year revenue jumped from S\$21.32 million in 2024 to S\$54.64 million in 2025, an increase of 156%. Growth was particularly strong in the ready-mix concrete and cable installation segments due to new plant capacity and recommencement of major projects.
- Profit: The Group reversed a prior year loss (-S\$233,000 in 2024) to a profit of S\$5.2 million in 2025. This is a clear sign of turnaround and operational leverage.
- Gross Margin: Gross margins decreased slightly to 25.5% (from 28.5%), reflecting a shift in sales mix toward lower-margin ready-mix concrete. However, absolute profit rose significantly.
Exceptional Earnings and Expenses
- Impairment Losses: S\$414,000 net impairment loss mainly due to receivables in the ready-mix concrete division.
- Depreciation: Higher depreciation charges (S\$4.73 million vs S\$3.65 million in 2024) reflect investment in new plant and equipment.
- Finance Costs: Increased financing costs due to new lease liabilities and bank borrowings (S\$375,000 vs S\$282,000 prior year).
Asset Revaluation and Capital Investment
- Investment Properties: Valued at S\$60M as of December 2025, with depreciation offsetting minor additions.
- Plant and Equipment: Net book value rose to S\$13.95M, up S\$4.09M YoY, mainly due to new plant acquisition.
- Bank Borrowings: Drawn down S\$6.5M for working capital in FY2025.
Dividend Policy
- No dividend declared for FY2025 or FY2024. Management indicates intention to preserve capital for expansion and working capital needs in view of expected business growth.
Chairman’s Statement
“The group’s ready-mix division hopes to continue its good momentum so as to capture a slice of the strong demand in the construction sector. The new order book from the cable installation contracts is expected to increase business activity in 2026. Coupled with the consistent income from the contract leasing and services segment, we remain optimistic of the group performance for the next 12 months.”
The tone is positive, reflecting confidence in continued sector momentum and the Group’s ability to capitalize on new opportunities.
Business Trends & Outlook
- Singapore’s construction sector is forecast to remain strong in 2026, with steady demand projected by BCA (S\$47-53 billion).
- HGH Holdings expects continued growth in both ready-mix and cable installation segments, supported by new capacity and order books.
- No significant legal disputes, policy changes, or seasonal/cyclical effects are noted.
- No related party transactions or asset sales of significance occurred during the period.
Summary & Investor Recommendations
Overall Performance: HGH Holdings Ltd. has demonstrated a strong financial recovery, with record revenue and profit growth, sound asset base, and positive sector outlook. The absence of dividends is justified by plans to reinvest for further expansion.
- If you are currently holding HGH Holdings Ltd.: Consider holding your position. The company is in a recovery phase with sector tailwinds, new plant capacities, and a positive outlook. However, monitor for execution risks, margin pressures, and the absence of dividends.
- If you are not currently holding: Consider initiating a position if you seek exposure to Singapore’s construction sector and are comfortable with cyclical and project-based earnings. HGH’s operational turnaround and sector momentum offer potential upside, but lack of dividends may not suit income-focused investors.
Disclaimer: This article is based strictly on HGH Holdings Ltd.’s official financial report for 2025 and does not constitute investment advice. Investors should conduct their own due diligence and consider their individual risk tolerance before making decisions.
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