HG Metal Manufacturing reported a net profit of S$7.34 million for the nine months ended 30 September 2025, down 14 per cent year-on-year, as weaker steel prices and a shorter reporting period outweighed cost efficiencies.
Earnings per share from continuing operations came in at 2.67 Singapore cents, versus 5.06 cents a year earlier. The board has proposed a final, tax-exempt cash dividend of 1.5 cents per share; payment and books-closure dates will be announced later. No dividend was declared for the preceding financial year.
Revenue fell 17 per cent to S$130.27 million. The manufacturing division remained the largest contributor, booking external sales of S$124.57 million and a pre-tax profit of S$9.30 million. The trading unit recorded S$5.71 million in external sales and S$4.15 million in pre-tax profit. Corporate and inter-segment eliminations totalled a negative S$6.01 million, resulting in group pre-tax earnings of S$8.73 million.
Gross profit margin edged up to 14.7 per cent from 14.0 per cent, helped by lower material costs. Selling and distribution expenses slid 11 per cent to S$1.32 million, while finance costs dropped 41 per cent to S$0.36 million after loan repayments trimmed interest charges.
Operating cash flow strengthened to S$15.67 million, supported by inventory reductions and improved receivables collection. Net cash stood at S$68.55 million at end-September, up from S$55.39 million nine months earlier.
Looking ahead, the company expects to benefit from Singapore’s infrastructure pipeline, including MRT extensions and major public-sector projects projected by the Building and Construction Authority. Management cautioned, however, that global steel oversupply and subdued demand from China continue to pressure selling prices. HG Metal plans to adopt “agile procurement strategies” and pursue longer-term contracts to protect margins while exploring opportunities tied to Singapore’s Draft Master Plan 2025 and related construction demand forecasts.
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