Hafary Holdings Limited reported net profit of S$10.6 million for the six months ended Jun 30 2026, a 23.4 per cent decline year-on-year, as weaker activity in Singapore’s construction and residential renovation markets curtailed sales.

Group revenue fell 10.5 per cent to S$122.7 million. Basic earnings per share dropped to 2.37 Singapore cents from 3.04 cents a year earlier. The board declared an interim tax-exempt dividend of 0.75 Singapore cent and a special interim dividend of 0.25 cent per share, totalling 1.0 cent—down from 1.25 cents in the prior-year period. Record and payment dates will be announced later.

By segment, the general division, which serves retail and small-scale renovation customers, contributed S$59.5 million in revenue, down 6.2 per cent YoY, yet still delivered S$9.2 million in pre-tax earnings. Project sales to developers and contractors slipped 3.2 per cent to S$39.0 million, generating S$7.8 million in profit before tax. The manufacturing arm posted a 27.6 per cent sales contraction to S$24.2 million and swung to a pre-tax loss of S$4.1 million, reflecting lower export demand. The “Others” segment, mainly rental income, booked S$0.7 million in pre-tax profit.

Gross margin improved to 43.4 per cent from 40.0 per cent, helped by lower cost of sales, which fell 15.5 per cent to S$69.5 million. This benefit was offset by higher inventory impairment charges of S$2.3 million (versus S$0.6 million a year earlier) and a 7.4 per cent rise in other expenses to S$11.7 million. Finance costs declined 17.8 per cent to S$4.6 million following the repayment of borrowings.

During the period, Hafary increased its stake in Hafary Myanmar Investment to 50 per cent, lifting its share of joint-venture profit to S$0.7 million. Cash flow from operations stood at S$9.3 million, while net gearing edged up to 1.16 times as at Jun 30 2026.

Looking ahead, management cited mixed industry signals. Singapore’s Building and Construction Authority projects steady construction demand of S$47 billion–S$53 billion for 2026, though potential moderation is expected after completion of major projects such as Changi Terminal 5. In Malaysia, Bank Negara expects 2026 GDP growth of 4–5 per cent, underpinning domestic demand for building materials. Globally, the World Bank forecasts 2026 growth of 2.5 per cent amid geopolitical risks and elevated energy prices. Hafary said it will “closely monitor its supply chain activities” and remain focused on cost discipline and diversification of revenue streams to navigate the volatile environment.