Company Update: Ever Glory United Holdings Ltd. (EGUH SP / ZKX.SI)
Company Update: 6 February 2025
Capitalising on Singapore’s construction landscape.
- Strong revenue growth, margin pressure. Ever Glory experienced significant growth in 1H24, with revenue rising 20.9% YoY due to an increased number of ongoing M&E engineering projects. However, gross profit decreased by 18.6% YoY as higher-margin projects were completed in FY2023. To mitigate inflationary pressures, the company is closely monitoring project costs and exploring diversification into property development.
Public housing demand surge
Singapore’s post-pandemic public housing boom continues, with the government launching 19,600 Build-To-Order (BTO) flats in 2025 and targeting 100,000 units by 2027. This surge in public housing projects is a key growth driver for Ever Glory’s M&E services.
1H24 financial results
Ever Glory reported a 20.9% YoY revenue growth to S$32.11mn in 1H24, up from S$26.56mn in 1H23, driven by an increase in ongoing M&E projects. However, gross profit declined by 18.6% YoY from S$8.25mn in 1H23 to S$6.71mn in 1H24, primarily due to the completion of higher-margin projects in FY23 and inflationary pressures impacting profitability. To address these challenges, the management is actively monitoring project costs and pursuing new tenders to expand its order book, ensuring sustainable revenue growth.
Interim dividend
An interim dividend of S$0.005 per ordinary share was distributed on 11 November 2024.
Risks
Market dependence, regulatory and policy risks, order book volatility, inflationary pressure and lack of long-term contracts.
