Hong Fok Corporation Limited reported a net profit of S$7.07 million for the six months ended Jun 30, 2026, a 43% year-on-year (YoY) increase from S$4.94 million, underpinned by higher revenue from residential unit sales at Concourse Skyline and firmer rental contributions from its investment properties.

Revenue rose 17 per cent YoY to S$54.74 million. Basic earnings per share improved to 1.21 Singapore cents from 0.85 Singapore cents. The board did not declare an interim dividend, in line with its practice of considering distributions at the year-end.

Segmentally, property investment remained the key earnings engine, delivering pre-tax profit of S$12.76 million, up from S$6.37 million a year earlier. Property development and construction contributed S$3.65 million (H1 2025: S$2.16 million), reflecting increased recognition from completed unit sales. Property management generated S$0.17 million, reversing a small loss previously, while other operations booked a pre-tax loss of S$6.43 million.

On the cost side, the group booked a S$3.97 million fair-value loss on its portfolio of quoted securities, compared with a S$1.17 million gain in H1 2025. The sale of additional residential units lifted cost of sales to S$8.19 million. Finance expenses declined 35 per cent to S$9.46 million following lower borrowing costs, partially offsetting higher professional fees and a one-off loss on the disposal of a club membership.

During the half, Hong Fok invested S$1.16 million in its investment properties, sold S$10.6 million worth of marketable securities, and repurchased 16.19 million of its own shares for S$15.22 million. Net cash from operations amounted to S$27.34 million, taking cash and cash equivalents to S$34.27 million at end-June. Net debt stood at S$687.20 million after refinancing a portion of secured borrowings, which reduced current maturities.

Looking ahead, the company expects its YOTEL Singapore Orchard Road hotel to maintain healthy occupancy amid resilient tourism demand, although management remains mindful of geopolitical uncertainties and cost inflation. Office leasing conditions are viewed as stable due to steady occupier demand and limited new supply, while buyer interest in Singapore’s private residential market is anticipated to stay firm, supporting ongoing sales at Concourse Skyline.

Hong Fok said it will continue focusing on revenue optimisation, prudent cost management, and strategic capital allocation to sustain profitability in the second half of 2026.