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23-09-2025, 10:17 AM
(This post was last modified: 23-09-2025, 10:19 AM by weijian.)
(07-09-2025, 03:12 PM)¯|_(ツ)_/¯ Wrote: 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.
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
Posts: 4,748
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09-07-2026, 10:07 AM
(This post was last modified: 09-07-2026, 10:07 AM by weijian.)
HLS has just announced an expected operating loss for 1H26 with escalating costs. Ready made concrete prices (which I track) has jumped at least 15-20% since the US/Israel-Iran war compared to end 2025 and Towkay Chua is "known" for been conservative in bidding for contracts...
While we are in the midst of a construction boom, I wonder if this is a harbinger of things to come for many businesses whom are stuck in the situation where it cannot readily pass on immediate escalating costs to customers due to relatively fixed price contracts.
NEGATIVE PROFIT GUIDANCE FOR THE UNAUDITED FINANCIAL RESULT FOR HALF YEAR ENDED 30 JUNE 2026
Based on a preliminary review of the Group’s financial statements, the Group expects to report an operating loss for 1H2026, compared with an unaudited profit before tax of S$10.0 million for the corresponding period in 1H2025.
The Group’s weaker performance was mainly due to higher operating costs in the civil engineering segment. The increase was driven by higher-than-anticipated project costs, including concrete, steel, manpower, transportation and subcontractors’ cost. In addition, ongoing geopolitical tensions in the Persian Gulf contributed to higher oil prices, which further increased operating costs. These factors have adversely affected the Group’s profitability.
https://links.sgx.com/FileOpen/HLS%20-%2...eID=895716
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
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