+ 1Q24 net profit surged by 46.5% YoY, on the back of volume recovery from a low base in the year earlier, the absence of losses from the 17%-owned Maldives hotel assets, and lower interest expenses. We estimate that steel prices were about 17% lower YoY.
+ Gross margin was 2.0% points higher YoY, which reflects a higher utilisation rate at its fabrication plant and possibly lower freight costs.
+ Net debt at end-Dec 23 of S$207mn was flat versus S$196mn at end-Sep 23, despite the jump in sales, suggesting still healthy working capital and no collection stress. Lower steel prices also free up trade financing needs. Net gearing as at end-Dec was 0.46x.