Hafary H2 profit increases 187.1% to S$19.8 million

TILE specialist Hafary Holdings : 5VS 0% posted a profit net of tax of S$19.8 million for the second half of the financial year ended Dec 31, 2022, up 187.1 per year on year from S$6.9 million. 

Revenue climbed up by 44.6 per cent to S$97.6 million, from S$67.5 million a year earlier.

In a business update on Friday (Feb 17), the mainboard-listed company noted that this was fuelled by revenue growth in both its general and project segments. 

Revenue in its general segment – where customers include homeowners, architecture, interior design and renovation firms – had risen by 40.3 per cent to S$62.6 million in H2, supported by the “active resale market” and “robust demand from homebuyers”.

In its project segment – where customers include architecture firms, property developers and construction companies – revenue also soared by 52.9 per cent to S$35 million, as construction activity resumed post-pandemic. 

For the full-year FY2022, profit net of tax increased 148.8 per cent year on year to S$30.6 million, while revenue rose 34 per cent year on year to S$168.9 million. This translated to an earnings per share increase to S$0.0682 for FY2022, from the previous year’s S$0.0269. 

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Looking ahead, Hafary expects demand for residential and industrial building construction to remain at levels comparable to last year’s, underpinned by the development of new condominiums and high-specification industrial buildings. 

Still, the company noted that potential risks include growing inflationary pressures and rising interest rates that might crimp homebuyers’ loan capacities. 

“The unfulfilled pent-up consumption demand may likely go towards overseas travel, rather than domestic spending,” it added. “Nevertheless, (we remain) committed to weathering the challenging business environment as market risks remain elevated and will also closely monitor its supply chain activities.” 

Shares of Hafary closed at S$0.225 on Friday, up 2.3 per cent or S$0.005, before the news.