Company Overview

• Engineering, Procurement, and Construction (EPC) services
• Plant maintenance for oil and gas, petrochemical, chemical, power, and pharmaceutical industries
• Mechanical construction including process piping, pressure vessels, and modular compression systems

Recent Share Price Decline: Key Factors

1.  Severe Revenue Decline

• FY2025 revenue: S$22.86 million (down 8.3% from FY2024' s S$24.94 million)

   
• Revenue has declined 17% over the past year and 6.7% over the past three years in aggregate

   
• This contrasts sharply with the construction industry' s expected 40% growth forecast

2.  Earnings Collapse

• Net income plummeted 69%: From S$20.07 million in FY2024 to just S$6.2 million in FY2025

   
• EPS diluted crashed 79%: From S$0.007 in FY2024 to only S$0.002 in FY2025

   
• The FY2024 results were artificially inflated by S$19.32 million in one-off gains (debt restructuring/discharge) that didn' t repeat in FY2025

   

3.  Extreme Valuation Disconnect

• The stock trades at a Price-to-Sales ratio of 4.6x&ndash 5.5x, while half of Singapore' s construction industry trades below 0.8x P/S

   
• This premium valuation is difficult to justify given the declining revenue trajectory versus industry growth expectations

4.  Share Dilution from Capital Raising

• Massive share issuance has diluted existing shareholders:
  • Shares outstanding grew from 3,060 million (FY2024) to 3,873 million (FY2025) &mdash a 27% increase

     
  • This dilution directly contributed to the 73% EPS decline

     

5.  Insider Selling

• Substantial insider selling in Q4 2025: Director Tian Yuan dumped S$3.7 million worth of shares

   
• This signals lack of confidence from key management figures

6.  Profitability Warning Signs

• The company has identified 6 warning signs in its financials (2 considered particularly concerning)

   
• Free cash flow turned negative at -S$40,750 in the trailing twelve months

   

Recent Price Action

Summary

1. The FY2024 earnings were unsustainable (boosted by one-off restructuring gains)
2. Core operations remain weak with declining revenue in a growing industry
3. Massive dilution is destroying shareholder value
4. Insider selling confirms management' s lack of confidence