HG Metal (SGX:BTG
) has reported net profit after tax of $6.0 million for 1HFY2026 ended March 31, a decline of 4% y-o-y.
Revenue stood at $81.0 million in 1HFY2026, a drop of 5% y-o-y, mainly due to a 1% drop in sales volume and a decline of 4% in average selling price amid the continued weakness in steel prices.
Despite the lower revenue, HG Metal’s gross profit grew by 21.1% y-o-y to $13.8 million and gross profit margin expanded to 17.1% in the same period, driven by lower average material costs.
Other operating income was lower at $1.3 million due to lower foreign exchange and fair value gains and reduced interest income, which were partially offset by a one-off insurance compensation for property repair cost.
Selling and distribution expenses decreased by 8% y-o-y to $800,000 in 1HFY2026. This was attributed to internal fleet optimisation and reduced outsourced logistics services.
Administrative expenses were higher by approximately $500,000 due to higher salary costs.
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Other operating expenses rose to $2.2 million in 1HFY2026 as a result of higher repair and maintenance costs. Finance costs declined 30% y-o-y, driven by lower utilisation of trade financing and repayment of bank loans.
HG Metal’s total net asset stood at $155.4 million as at March 31, with lower bank borrowing of $4.4 million following loan repayments made during the period.
Cash and cash equivalents decreased to $55.5 million due to the cash outflow from the $5.7 million Eden Flame subscription and $1.0 million deposit paid for 47 Tuas View Circuit.
“We remain focused on operational efficiency and long-term value creation for our shareholders, while staying watchful of the evolving macroeconomic and geopolitical landscape,” says Xiao Xia, executive director and CEO of HG Metal.
Shares of HG Metal closed 1 cent lower, or 1.6% down at 61.5 cents on May 8.
