Tai Sin Electric FY2026 revenue at S$597.3 million, profit at S$11.2 million on copper contract provisions

SGX Filings
Aug 28

Tai Sin Electric Limited posted a net profit attributable to shareholders of S$11.2 million for the 12 months ended Jun 30, down 56.8 per cent year-on-year, as provisions for onerous long-term contracts weighed on earnings despite higher sales.

Earnings per share slipped to 2.43 Singapore cents from 5.64 cents a year earlier. The board has proposed an unchanged final tax-exempt dividend of 1.60 Singapore cents a share, payable on 27 Nov 2026 to shareholders on record as at 20 Nov 2026, following an interim payout of 0.75 cent already distributed.

Group revenue rose 24.2 per cent to S$597.3 million, lifted by: • Cable & Wire: S$384.1 million, up 11.9 per cent, driven by stronger demand in Malaysia and Vietnam. • Electrical Material Distribution: S$124.5 million, up 15.8 per cent, helped by building & infrastructure, marine and electronics customers and a full-year contribution from the Indonesian unit acquired in FY2025. • Renewable Energy Solutions (acquired Nov 2025): S$59.8 million first-time contribution from Integra R.E. in Thailand and the Philippines. • Test & Inspection: S$28.8 million, down 3.9 per cent owing to slower heat-treatment and NDT activity in Indonesia.

Pre-tax earnings fell 57.1 per cent to S$13.3 million. The Cable & Wire segment’s profit before tax dropped to S$5.0 million after recognising S$23.1 million of onerous contract provisions linked to higher copper prices. Excluding these provisions, the segment’s underlying pre-tax profit would have improved. Electrical Material Distribution lifted pre-tax profit to S$3.1 million on higher associate contributions, while the newly added Renewable Energy Solutions arm generated S$5.4 million, including a S$4.0 million bargain-purchase gain from acquisitions. Test & Inspection swung to a small loss due to the absence of a prior-year disposal gain.

Higher copper costs also compressed group gross profit margin to 11.5 per cent from 16.7 per cent. Operating expenses rose on acquisition-related consolidation and increased logistics, staff and IT costs. Net finance expenses edged up in line with greater working-capital borrowings and debt for acquisitions.

During the year the group spent S$7.7 million on property, plant and equipment, invested S$1.5 million for a 25 per cent stake in EV Mobility, and completed the S$7.3 million purchase of Integra R.E. Group. Net operating cash inflow reached S$16.7 million, while year-end cash rose to S$44.6 million. The balance-sheet showed a S$23.9 million provision for onerous contracts and total borrowings of S$106.2 million.

Looking ahead, the company cited persistent volatility in macroeconomic and commodity markets but sees opportunities from Southeast Asia’s infrastructure build-out and accelerating renewable-energy adoption. Management intends to leverage the newly established Renewable Energy Solutions segment and maintain vigilance over copper price movements while pursuing regional expansion and operational efficiency initiatives.

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