Hai Leck Holdings Limited – FY2024 Sustainability and Performance Report: Key Insights for Investors

Key Facts from the Report:

1. Reporting Period: The report covers the financial year ending June 30, 2024 (FY2024).
2. Company Overview: Hai Leck Holdings Limited is an integrated service provider, primarily serving the oil, gas, and petrochemical industries in Singapore and Thailand.
3. Employee Base: As of June 2024, the company employs approximately 2,000 people.
4. Financial Performance:
   • FY2024 revenue: SGD 54.35 million, a decline from FY2023 revenue of SGD 68.62 million.
   • Total economic value distributed in FY2024 was SGD 55.66 million.
   • The company noted a reduction in operating costs and wages but maintained consistent payments to providers of capital.

Investor Actions and Notable Points:

1. Dividend Payments: Payments to providers of capital, which likely include dividends, remained stable at around SGD 4.68 million for FY2024. However, specific dividend details are not explicitly mentioned.
2. Climate-Related Risks and Opportunities:
   • Hai Leck is actively assessing climate-related risks, especially given the outdoor nature of its operations. These risks include unpredictable weather patterns and potential cost increases associated with transitioning to lower-emission technologies.
   • The company is taking steps to minimize its environmental impact, including initiatives like solar panel installation, reducing idle vehicle time, and adopting energy-efficient lighting and air-conditioning.
3. Waste and Emissions Management:
   • Waste disposal is carefully managed, with a significant portion of hazardous and non-hazardous waste diverted for recycling.
   • Scope 1 and 2 emissions have been reduced compared to FY2023.
4. Occupational Health and Safety: The company places a strong emphasis on safety, aiming for zero accidents. There were no fatalities or serious injuries reported in FY2024.
5. Special Initiatives to Improve Profitability: Hai Leck is focusing on managing economic performance while balancing sustainability goals, seeking opportunities to assist clients in decarbonization and enhancing operational efficiency.

Recommendations for Investors:

• For Current Shareholders:
  • Hold: The company’s focus on sustainability, cost management, and steady performance in difficult market conditions suggests a long-term approach. The steady payments to providers of capital may provide a buffer for investors despite short-term revenue declines.
• For Potential Investors:
  • Consider Buying: If you’re looking for a company committed to sustainability with solid industry experience, Hai Leck could be a viable option, especially given its efforts to adapt to climate-related challenges and expand its capabilities in the energy sector.

Disclaimer:

This recommendation is based on data from Hai Leck’s FY2024 report. Investment decisions should consider broader market conditions and individual financial situations. Always seek personalized financial advice before making investment decisions.