Revenue, which rose by 32% y-o-y to $298.8 million, also surpassed the analysts’ expectations by 17%, thanks to a sharp rebound in 2HFY2025 and the y-o-y increase in civil engineering contracts. The segment contributed 93% of group revenue, which more than offset the dormitory segment, which ended in August 2024.
In FY2026 to FY2027, the analysts expect the company’s revenue to come in at $331 million and $351 million respectively. Their estimates, raised by 16% to 18%, have factored in stronger execution, order wins and new dormitory contributions.
The analysts have also lowered their margin expectations on the back of an expected increase in fuel prices, leading to net profit forecasts of $21.1 million and $22.4 million in FY2026 and FY2027 respectively.
Huationg has re-entered the dormitory segment with a new management contract for a 4,000-bed government-built facility. The contract will contribute about $3 million to $4 million in net profits in FY2026. “This contract revives a high-margin income stream and keeps the group well-positioned for future dormitory tenders,” say Mo and Tang.
As at the end of FY2025, Huationg’s orderbook stood at $535 million, as the group continues to take part in major infrastructure projects such as Changi Airport’s Terminal 5, the Cross Island Line and Tuas Megaport. The group also has potential upside from tenders for Tengah Air Base, Pulau Tekong and future Changi developments. “These projects typically engage early-cycle civil contractors, aligning well with Huationg’s capabilities,” Mo and Tang add.
The analysts, who have kept their “buy” call on the stock, believe a potential transfer to the Mainboard could trigger a re-rating.
“As a profitable, dividend-paying company with over $150 million market cap and a consistent track record, Huationg meets the key eligibility criteria for a transfer from the Catalist board to the SGX Mainboard,” the analysts write. “A successful transfer would elevate visibility, improve liquidity and increase the investor base, supporting a potential re-rating.”
Shares in Huationg Global closed 0.5 cents higher or 0.59% up at 85 cents on March 12.
