Aedge Group Limited Sustainability and Growth Strategy: FY2024 Report – A Commitment to Expansion and ESG Leadership

Key Facts from the Aedge Group Limited FY2024 Sustainability Report:

1. Financial Year and Report Date:

   • The report covers the financial year from 1 July 2023 to 30 June 2024.

2. Special Company Actions:

   • Aedge Group successfully completed the acquisition of 9 Tuas South Street 11 in October 2023, converting it into a workers’ dormitory to support workforce well-being and expand engineering operations.
   • They also proposed the acquisition of 4 Tuas South Street 11, aimed at further expanding engineering services. This property will be used for the company’s operational needs and available for tenancy.

3. Sustainability and Profitability Initiatives:

   • The company disclosed Scope 3 emissions for the first time, showing commitment to comprehensive carbon footprint management, including supplier and transportation impacts.
   • Aedge is committed to aligning with the Task Force on Climate-related Financial Disclosures (TCFD), indicating its focus on managing climate-related risks.

4. Dividends:

   • There is no mention of dividends being offered in this report.

5. Performance Summary:

   • Revenue for FY2024 was 23.9 million SGD.
   • The company recorded no corruption or bribery cases and achieved zero driving offences, demonstrating strong governance and operational safety.

6. Sustainability Performance:

   • In FY2024, Aedge managed 100% of waste through proper disposal channels and increased fuel consumption due to higher business activity, resulting in 552,338 liters of fuel consumed.
   • Significant focus on employee development, with 12 training hours per employee and a goal of increasing female workforce representation to 15% by FY2025.

Notable Key Points for Investor Actions:

• Expansion through acquisitions: The company is actively acquiring and repurposing properties to expand engineering operations, which is crucial for long-term growth.
• Sustainability commitments: With the introduction of Scope 3 emissions and TCFD alignment, the company is focusing on reducing its environmental impact, a positive for ESG-conscious investors.
• No dividend: Investors should note that the company has not mentioned paying dividends, potentially indicating that profits are being reinvested in growth and sustainability initiatives.

Special Considerations for Investors:

• Holding Investors: If you currently hold stock, the company’s active expansion and strong governance show growth potential. Hold the stock for long-term gains as they improve operational efficiency and sustainability.
• New Investors: If you do not currently hold stock, this could be a good opportunity to buy, especially if you prioritize ESG investments. The company is focused on both environmental impact and profitability growth.

Special Activities to Improve Profitability:

• Property acquisitions to expand engineering capabilities.
• Focus on carbon emissions reduction through disclosures and initiatives related to climate-related financial risks and opportunities.

Recommendation Disclaimer:

This recommendation is based on the company’s publicly available sustainability report for FY2024. Investors should conduct further research or consult financial advisors before making any investment decisions.