Hong Lai Huat Group Limited: Financial Analysis and Recommendations
Net Profit Growth/Decline: No specific growth or decline percentage mentioned, but material variances between unaudited and audited financial statements for FY2024 are reported.
Date of Report: 14 April 2025 Financial Year: 31 December 2024
Business Description
Hong Lai Huat Group Limited is a Singapore-incorporated company with its subsidiaries (the “Group”) operating in the real estate development sector. The company’s core business operations involve the development and sale of properties.
Industry Position and Competitors
The report does not provide detailed information about the company’s position within the industry, its competitors, or market share. However, it mentions that the company has a joint venture, Royal Hong Lai Huat One Company Limited, which is related to the sale of completed development properties.
Revenue Streams, Customer Base, Supply Chain, and Competitive Advantage
The report does not provide detailed information about the company’s revenue streams, customer base, supply chain, or competitive advantage. However, it mentions that the company has a joint venture and reassesses incremental costs of obtaining a contract related to the sale of completed development properties.
Financial Analysis
Income Statement
The company reported a variance in share of profit of a joint venture due to reassessment of incremental costs of obtaining a contract, resulting in an increase of $1.2 million expenses.
The variance in share of loss of a joint venture was due to a prior year adjustment to the share of results of the joint venture, resulting in a decrease of $0.6 million loss.
Balance Sheet
The company’s investment in a joint venture decreased by $382,000 (or 1.4%) from $27,206,000 to $26,824,000 as at 31 December 2024.
The company’s investment in a joint venture increased by $837,000 (or 3.9%) from $21,568,000 to $22,405,000 as at 31 December 2023.
Key Findings
The company’s unaudited and audited financial statements for FY2024 have material variances, primarily due to reassessment of incremental costs of obtaining a contract related to the sale of completed development properties.
The company’s financial performance is affected by its joint ventures, with variances in share of profit and loss reported.
Important Information for Investor Action
The company’s Board of Directors announced that there are material variances between the unaudited and audited financial statements for FY2024.
The variances are primarily due to reassessment of incremental costs of obtaining a contract related to the sale of completed development properties.
Dividend and Earnings
No dividend amount or proposal mentioned in the report.
Special Activity or Action
The company is making adjustments to its financial statements due to reassessment of incremental costs of obtaining a contract related to the sale of completed development properties.
Recommendations
For Current Investors:
Based on the report, we recommend that investors hold their position in Hong Lai Huat Group Limited, as there are no significant red flags or negative trends indicated. However, investors should closely monitor the company’s performance and reassess their position based on future financial reports.
For Potential Investors:
We recommend that potential investors exercise caution when considering investing in Hong Lai Huat Group Limited. The company’s financial performance is affected by its joint ventures, and material variances between unaudited and audited financial statements may indicate potential risks.
Disclaimer: Our recommendations are based solely on the information provided in the report and may not reflect the complete financial picture or future performance of the company.
Conclusion
Hong Lai Huat Group Limited’s financial report indicates material variances between its unaudited and audited financial statements for FY2024. While there are no significant red flags, investors should exercise caution and closely monitor the company’s performance. Current investors can consider holding their position, while potential investors should carefully evaluate the company’s financials and prospects before making a decision.
