HG Metal Manufacturing Limited reported net profit of S$6.0 million for the six months ended 31 Mar 2026, 4 per cent lower year-on-year, as wider gross margins helped offset the impact of softer steel prices on revenue.
The Mainboard-listed steel distributor’s revenue slipped 5 per cent to S$81.0 million, while gross profit rose 21 per cent to S$13.8 million, lifting the gross margin to 17.1 per cent from 13.3 per cent a year earlier. Diluted earnings per share came in at 2.19 Singapore cents, compared with 2.57 cents in 1H2025.
Turnover declined after sales volume eased 1 per cent and average selling prices fell 4 per cent. The margin expansion, together with lower finance costs, pushed profit before tax up to S$7.2 million from S$7.0 million. Excluding foreign-exchange and derivative gains, underlying pre-tax profit improved to S$6.8 million from S$4.8 million.
Other operating income contracted to S$1.3 million, reflecting smaller forex gains and lower interest income, while administrative expenses rose by about S$0.5 million on higher staff costs. Repair and maintenance spending lifted other operating expenses to S$2.2 million, and tax expense increased to S$1.1 million.
The balance sheet remained in a net-cash position. Cash and equivalents stood at S$55.5 million on 31 Mar 2026 after S$4.1 million of dividend payments in the prior half-year, S$5.7 million subscribed in Eden Flame Sdn Bhd preference shares and a S$1.0 million deposit for the planned purchase of 47 Tuas View Circuit. Total bank borrowings were pared to S$4.4 million from S$5.1 million six months earlier.
The group is advancing two strategic projects: a low-carbon electric-arc-furnace steel plant in Pasir Gudang, scheduled to start up by the end of 3Q2026 with annual capacity of about 500,000 tonnes, and the acquisition of the Tuas View Circuit property to expand processing capabilities, subject to regulator approval.
Chief executive officer Xiao Xia noted that disciplined procurement and cost control underpinned the higher margin and said the company will continue focusing on operational efficiency and long-term value creation while monitoring macroeconomic and geopolitical risks that could temper construction demand and elevate energy costs.