Ley Choon Group H2 profit rises to $5.5 million, declares first dividend since 2014

SINGAPORE - Roadworks construction company Ley Choon Group on May 27 reported a net profit from continuing operations of $5.5 million for the second half ended March 31, up 18.4 per cent from $4.7 million year on year.

This translates to an earnings per share (EPS) from continuing operations of $0.00367, compared with $0.0031 in H2 FY2023.

Including discontinued operations, net profit for the half-year was 18.4 per cent higher at $5.5 million, from $4.6 million.

Discontinued operations refer to the results of a disposed associate, Ley Choon (Yantai) Eco-Green Construction Material. The disposal of the balance 40 per cent equity interest in Ley Choon (Yantai) Eco-Green was completed on Dec 29, 2022; it is no longer an associated company of Ley Choon Group.

The group declared a final dividend of $0.0027 per share for FY2024. This is Ley Choon’s first dividend payout since 2014, said its chief executive and executive chairman Toh Choo Huat.

Revenue for the period rose 5.9 per cent on-year to $66.3 million, from $62.7 million. This was attributed to higher construction activities in road works and cable laying projects, partially offset by lower revenue from airport and pipe laying projects that are nearing completion.

For the full year, Ley Choon’s net profit from continuing operations was $10.9 million, up 16.8 per cent from $9.3 million in FY2023. Full-year revenue increased 4.2 per cent to $129.1 million, from $123.9 million.

The group said it has an unfulfilled order book of $258.5 million, as at March 31. The amount will be recognised over the next 24 to 36 months.

Mr Toh said: “The underground utility infrastructure sector in Singapore remains favourable over the midterm on the back of an ongoing replacement cycle at scale.”

Shares of Catalist-listed Ley Choon rose 1.7 per cent or $0.001 to $0.06 on May 27, before the announcement.

THE BUSINESS TIMES