Hock Lian Seng

[¯|_(ツ)_/¯]

HLS@43cents

1H2025 Result was released on 6th Aug 2025: (link to HLS website)

Rev $103m +3.5%
GM  $   7m -63%
NP  $    8m -57%

The order book for civil engineering segment stands at approximately $335 million as at 30 June 2025 which include mainly the Aviation park station project and Serangoon North Station project.


The Group’s industrial building project, Shine@TuasSouth, has sold 59.2% and leased 39% of the total units to date.

The outlook of construction industry remains challenging on the back of competitive environment, labour shortage, rising material and labour cost. The management will continue to tender for infrastructure projects competitively and explore other business opportunities to enhance the shareholders’ value.

Enjoy:


Gratitude!

[¯|_(ツ)_/¯]

HLS@44cents

29 Aug: Award of tender at Pioneer Road. The group intends to develop as industrial strata title units.

(link)

Gratitude!
 

Enjoy:

[weijian]

HLS@44cents

29 Aug: Award of tender at Pioneer Road. The group intends to develop as industrial strata title units.

(link)

In the past 1-2years, Chairman Chua had expressed his intentions to re-start development projects, be it industrial or residential. While he is wary of high development costs post covid (as everything from raw materials to subcontracting costs like labor/civil engineering work has increased at least 30%), but his hand has probably been "forced" as no new major contract wiņ has materialized since 2022. This "no major contract win" situation is in stark contrast to the booming construction sector since 2024.

Shine@TuasSouth obtained TOP in 2018, right in the middle of the construction downturn and hence it was inevitable it had to endure a few years of of empty vacancy before things started to pick up in 2023. While the majority of unsold units have been rented, there is still ~40% unsold which translates to ~70-80strata units.

So now, Chairman Chua is ready to do a huge development project again, just the cost of the land lease is 88mil or ~50% of its net cash. It is located at Pioneer Road and just ~5min drive away from TuasSouth. The entire region definitely has a huge secular tailwind with PSA and Seatrium in the midst of consolidating all their ops there. I would assume that the team at HLS have done their homework so that they largely avoid a "Shine@TuasSouth" situation again.