Hong Lai Huat Group Limited has announced a return to profitability in the first half of the financial year 2026, achieving a net profit of S$1.1m. This marks a significant turnaround from the S$1.5m loss recorded in the same period last year. The company’s recovery is attributed to the complete divestment of its Cambodian agriculture division and a strategic shift towards generating steadier returns from existing operations.
The group’s revenue more than doubled year-on-year, driven by recurring rental income from investment properties and the sale of marble blocks. During this period, Hong Lai Huat returned S$2.8m to shareholders through share buy-backs, resulting in an increase in net asset value per share to 23.61 Singapore cents. The company maintains a healthy balance sheet with S$19.7m in cash and minimal gearing, whilst two land parcels remain at the design stage, awaiting favourable market conditions.
Dylan Ong Jia Jing, Executive Director and Chief Strategy Officer, stated, “The past few years have been demanding for our Cambodian operations, and our focus through that period has been on protecting the Group rather than pursuing growth for its own sake.” He emphasised the company’s cautious approach, saying, “We would rather move at a measured pace and preserve the Group’s financial position than force activity into an unreceptive market.”
Looking ahead, Hong Lai Huat plans to launch a new project when market conditions improve, continuing its strategy of cost control and rental income generation.
