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Joelton
Supreme |
09-May-2026 09:36
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HG Metal reports net profit of $6 mil for 1HFY2026, down 4% y-o-y HG Metal (SGX:BTG) has reported net profit after tax of $6.0 million for 1HFY2026 ended March 31, a decline of 4% y-o-y. Revenue stood at $81.0 million in 1HFY2026, a drop of 5% y-o-y, mainly due to a 1% drop in sales volume and a decline of 4% in average selling price amid the continued weakness in steel prices. Despite the lower revenue, HG Metal&rsquo s gross profit grew by 21.1% y-o-y to $13.8 million and gross profit margin expanded to 17.1% in the same period, driven by lower average material costs. Other operating income was lower at $1.3 million due to lower foreign exchange and fair value gains and reduced interest income, which were partially offset by a one-off insurance compensation for property repair cost. Selling and distribution expenses decreased by 8% y-o-y to $800,000 in 1HFY2026. This was attributed to internal fleet optimisation and reduced outsourced logistics services. Administrative expenses were higher by approximately $500,000 due to higher salary costs. Other operating expenses rose to $2.2 million in 1HFY2026 as a result of higher repair and maintenance costs. Finance costs declined 30% y-o-y, driven by lower utilisation of trade financing and repayment of bank loans. HG Metal&rsquo s total net asset stood at $155.4 million as at March 31, with lower bank borrowing of $4.4 million following loan repayments made during the period. Cash and cash equivalents decreased to $55.5 million due to the cash outflow from the $5.7 million Eden Flame subscription and $1.0 million deposit paid for 47 Tuas View Circuit. &ldquo We remain focused on operational efficiency and long-term value creation for our shareholders, while staying watchful of the evolving macroeconomic and geopolitical landscape,&rdquo says Xiao Xia, executive director and CEO of HG Metal. Shares of HG Metal closed 1 cent lower, or 1.6% down at 61.5 cents on May 8. |
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Joelton
Supreme |
25-Apr-2026 10:30
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HG Metal sees better days ahead with booming steel demand from the construction industry The construction upswing in Singapore has boosted investor interest in the industry ecosystem, which includes not only contractors but also material suppliers. Several high-profile names that have consistently engaged the investment community, such as concrete provider Pan-United Corp and steel stockist BRC Asia, have already built a certain level of profile. There are numerous other Singapore-listed players in this space as well. Steel supplier HG Metal Manufacturing (SGX:BTG) , which has been in this business since 1971, has seen plenty of ups and downs over the decades &mdash including changes in ownership. HG Metal, whose business spans sourcing to custom finishing, was listed back in 2002 but has been largely out of the limelight in recent years. Nonetheless, as the industry upcycle picks up and earnings improve, HG Metal has seen its share price gain 74.7% over the past year, closing at 62 cents on April 22. Back in 2020, during the industry downturn, HG Metal shares fell as low as 16 cents. &ldquo We think that the ongoing construction boom is a positive development not just for the steel industry, but also for the construction industry as a whole. We are hopeful that investor interest will extend to HG Metal as we engage the market,&rdquo says Ong Hwee Li, the company&rsquo s non-executive chairman, in an interview with The Edge Singapore. Space for steel HG Metal&rsquo s Jalan Buroh facility, which covers 20,000 sqm, provides ample space to stock and sell what customers need. It has an annual production capacity of 180,000 metric tonnes (MT) and supports value-added activities for its clients. For companies like HG Metal that deal with commodities, the key to running the business is to be careful and diversified in its procurement. &ldquo Apart from that, we are also tightening our inventory management to optimise our cost and margin. On the other hand, we also work closely with our downstream customers by providing them with value-added services,&rdquo says executive director and CEO Xiao Xia at the same interview. At times, the company will consolidate its operations to improve efficiency and reduce operating costs. To this end, HG Metal has sold off the assets it deems non-core in Myanmar and Indonesia. Instead, the company is focusing solely on growing the business it can generate in its home market, Singapore. In addition to finding new customers, Xiao is deepening relationships with existing customers by offering long-term contracts ranging from one to five years. By doing so, all parties have greater certainty about their respective costs and are less exposed to changes in market prices. As HG Metal&rsquo s results have shown, such moves have had a positive impact. For the financial period 2025 (FP2025) ended Sept 30, 2025, while revenue was down to $130.3 million, mainly due to shorter reporting period of nine months following the change of financial year from Dec 31, 2025 to Sept 30, 2025 and lower average selling price, gross profit margin improved slightly to 14.7% in FP2025 compared to 14% in FY2024, thanks to lower average cost of material costs during the financial period. Key differentiation According to Ong, HG Metal differentiates itself from the competition through its extensive warehousing and processing facilities and by sourcing raw materials from multiple countries, where price differences may add up. &ldquo The procurement strategy is the key to ensuring that we maintain our gross profit margins because of the fluctuating steel prices,&rdquo says Ong. &ldquo Just-in-time delivery as a key differentiating factor as well,&rdquo he adds. The steel industry may evoke images of 19th-century industrial activity, but, as far as HG Metal is concerned, it is keeping up with trends. Specifically, to better align with the global push for businesses to be more ESG-friendly, HG Metal has recently invested RM18 million ($5.68 million) in Malaysia-based Eden Flame, whose 500,000MT plant in Pasir Gudang will commence production of low-carbon steel to meet growing demand from sustainability-focused customers across Southeast Asia. Meanwhile, within Singapore, there is already plenty of demand. HG Metal has secured contracts to supply steel for projects including the Cross Island Line, the North-South Corridor, and the Jurong Regional Line. In addition to land transport infrastructure, HG Metal is seeing steady demand from both public and private housing. Commercial developments include the Yokogawa Electric Singapore Facility, the Resorts World Sentosa&ndash Waterfront Lifestyle Development and Rainforest Wild Asia. Having said so, HG Metal is clearly keen for more. The company is gunning for contracts from Changi Airport Terminal 5, the redevelopment of Alexandra Hospital, the Defence Science and Technology Agency, various public housing developments, and also ancillary infrastructure works at Changi East. However, unlike many of the listed construction companies, it makes regular order-book update announcements. BRC Asia, for example, has impressed investors with a growing order book of $2.2 billion as at end-2025. Citing competitive reasons, HG Metal will not do so for now otherwise, it is healthy and growing. &ldquo We will update the market as and when the contracts are in,&rdquo says Xiao, who became the company&rsquo s CEO in April 2023. Green Esteel, BRC Asia Besides riding on the regional construction boom together, HG Metal shares something else with BRC Asia. Both companies are controlled by a privately held entity called Green Esteel, which, in turn, is led by steel tycoon You Zhenhua, who also owns stakes in Malaysia&rsquo s Southern Steel. While based in China, You is active in Singapore and the region through other channels. His wife, Tong Yan, is managing director of building owner-developer New Vision, whose recent project, the Ascott Shenton Way Singapore at 15 Enggor Street, broke ground in January. Green Esteel first became an investor in HG Metal in February 2024, when it acquired a 5.3% stake from Rise Capital for $2,226,780, or 27.8 cents per share. Green Esteel invested another $13.3 million via two rounds of placements in June and August 2024, bringing its total stake to 29%, just below the 30% mandatory general offer level. In December 2024, HG Metal raised another $19.3 million following a 10-for-27 rights issue at 26.6 cents per share. As Green Esteel mopped up excess rights shares that other shareholders did not want, this triggered the general offer, upon which Green Esteel&rsquo s stake in HG Metal increased to 52.6%. Most recently, in January this year, Xiao, via her vehicle Dhu Holdings, sold her shares to Green Esteel, which further raised its stake to 61.7%. Xiao, who has a background in commodities trading, explains that HG Metal can leverage synergy with Green Esteel by tapping into Green Esteel&rsquo s capabilities and regional network, thereby strengthening the company&rsquo s regional supply chains. For example, HG Metal&rsquo s investment in Eden Flame, acquired from Green Esteel, can provide HG Metal with reliable, competitive sources of low-carbon steel, she says. With both BRC Asia and HG Metal sharing the same controlling shareholder, this raises questions about competition and how the two companies could complement each other. BRC Asia, says Ong, has been a supplier to HG Metal since 2003. &ldquo We have an established working relationship with them and there are opportunities for collaboration while maintaining our respective distinct positions,&rdquo Ong adds. However, Ong and Xiao add that HG Metal&rsquo s approach and goal are to build a diversified supplier base that includes BRC Asia, other local players, and overseas suppliers. &ldquo We want to ensure that we have competitive procurement and supply chain resilience. On top of that, we want to forge positive, collaborative relationships with all key suppliers. Our focus will be on reliability, service quality, pricing, just-in-time delivery and operational efficiency,&rdquo Ong adds. According to Ong, HG Metal and BRC Asia do compete in some areas where their respective offerings overlap. Both companies bid for projects independently based on their own commercial strategies and capabilities. Xiao stresses that despite the ownership structure, HG Metal is run independently. &ldquo Our board and management team continue to chart the growth of HG Metal by enhancing its competitive position and capitalising on future growth opportunities.&rdquo Various safeguards are in place, such as the interested person transactions (IPT) mandate, which governs all transactions, and oversight by the audit and risk committee, she adds. Disciplined growth To tap the growing market, in addition to the investment in Eden Flame, HG Metal recently spent $20.8 million to acquire 47 Tuas View, to add not just storage space but also up to 180,000 MT of production capacity over the next three to five years. &ldquo The rollout of the new capacity will be dependent on demand visibility, utilisation level and the broader construction outlook,&rdquo Ong says. For now, HG Metal will focus on realising returns from these two investments and will not consider any other acquisitions. &ldquo Nonetheless, we will still consider earnings-accretive acquisitions that will align with our current business strategy, both upstream and downstream, as opportunities arise,&rdquo says Ong, whose day job is the CEO of corporate finance firm SAC Capital. In recent years, Ong&rsquo s firm has been the most active in helping local small- and mid-caps raise funds via IPOs or placements. Besides bringing in new capital, the participation of certain institutional investors also helps attract other parties. Ong says that HG Metal will consider fundraising if there are specific objectives as part of its long-term plans, but for now, the company is deploying funds last raised in 2024, which have brought its cash balance to around $29.5 million. In short, the company is clear that it needs to be disciplined in its capital management and not get too carried away amid industry tailwinds. &ldquo We are seeing some market challenges such as China&rsquo s subdued property market, which has significantly dampened domestic steel demand, resulting in global oversupply of steel rebar and downward pressure on selling price,&rdquo says Ong. Also, ongoing geopolitical uncertainties, coupled with margin compression and competitive headwinds, contributed to their cautious outlook. Any potential delays in large-scale construction projects may also affect timelines and overall performance. Nonetheless, the company&rsquo s management is upbeat that HG Metal&rsquo s competitive advantages will enable it to thrive in this environment. &ldquo Our strong market position, coupled with agile procurement strategies and long-term contracts, will allow us to navigate price volatility and build a resilient order book over the long run,&rdquo says Ong. |
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Secret_Squirrel
Elite |
31-Jan-2026 13:56
Yells: "Stay curious but skeptical" |
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2 developments recently. 1. On 27 Jan 2026, chairman , Ong Hwee Li bought 100,000 shares. 2. Dhu Holding has entered into a share purchase agreement dated 29 January 2026 with Green Esteel Pte. Ltd. (" Esteel" ), Nuocheng International Trading & Investment Pte. Ltd. (" Nuocheng" ), Ms Xiao Xia (" Ms Xiao" ) and Mr Yu Zengqiang (" Mr Yu" ) to dispose all its shares in the Company (" Shares" ) to Esteel and Nuocheng. Ms Xiao and Mr Yu are deemed interested in the Shares held by Dhu Holding. After the sales, Dhu Holding holds zero shares, CEO Xiao Xia also no longer holds any deemed shares. All 35,642,600 shares sold to Green Esteel Pte Ltd. But they did not state what price they sold to Green Esteel Pte. Ltd. Following the sales, Green Esteel Pte. Ltd. Now owns 169,448,211 shares (61.68%). Chiarman bought, CEO sold. lol |
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Joelton
Supreme |
11-Dec-2025 11:15
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HG Metal to acquire stake in Malaysian steel manufacturer Eden Flame for RM18 mil
Eden Flame is a Malaysian steel manufacturer with a plant in Pasir Gudang, Johor Bahru. It is targeted to commence operations by the third quarter of 2026, with a specialisation in low-carbon electric arc furnace steel.
The plant will have an estimated annual production capacity of approximately 500,000 metric tonnes and its initial product focus is on 10mm &ndash 40mm rebars, which is a high-demand segment in Southeast Asia, the group notes.
The aggregate consideration of RM18 million, of which RM9 million is to be paid upon completion, and the remaining RM9 million is payable as and when call notices are issued by Eden Flame after completion. The completion of the proposed subscription will take place on a date to be mutually agreed between the two parties.
HG Metal says that the consideration will be funded through the company&rsquo s internal resources from existing working capital and/or proceeds previously raised from rights issues.
The Class B Shares will be issued as non-redeemable, non-cumulative preference shares that carry preferential dividend rights to ordinary shares of Eden Flame. The Class B Shares are convertible into ordinary shares based on a 1:1 ratio and represent approximately 4.4% of Eden Flame&rsquo s post-completion enlarged shares.
HG Metal says that the proposed subscription is part of its broader strategic initiative to strengthen its supply chain position in the regional steel market. It believes an equity stake in Eden Flame gives it a source of reliable and competitive low-carbon steel.
&ldquo This upstream investment will not only provide us a reliable and competitive source for low-carbon steel, but will also help to position HG Metal for the future as the demand for low- carbon steel in Singapore and the rest of Southeast Asia increases,&rdquo says Xiao Xia, executive director and CEO of HG Metal.
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katak88
Master |
29-Nov-2024 12:55
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21 Nov 2024 HG Metal Manufacturing Limited, a steel distributor and processor on the Singapore Exchange Securities Trading Limited, announced a renounceable non-underwritten rights issue to offer up to 74,254,237 new ordinary shares at S$0.266 each, on the basis of ten (10) Rights Shares for every twenty-seven (27) existing ordinary shares in the capital of the Company. 3. EXPECTED TIMETABLE OF KEY EVENTS Despatch of the Notification to the EntitledShareholders (together with the ARE or PAL, as the case may be) : 26 November 2024 Commencement of trading of " nil-paid" Rights Shares : 26 November 2024 from 9.00 a.m. Last date and time for splitting Rights Shares : 4 December 2024 at 5.00 p.m. Last date and time for trading of " nil-paid" Rights Shares : 4 December 2024 at 5.00 p.m. Last date and time for acceptance and paymentfor the Rights Shares(1) : 10 December 2024 at 5.30 p.m. (9.30p.m. for Electronic Applications through any ATM of a ParticipatingBank or an Accepted Electronic Service) Last date and time for acceptance and payment for the Rights Shares by renouncees(1) : 10 December 2024 at 5.30 p.m. (9.30p.m. for Electronic Applications through any ATM of a Participating Bank or an Accepted Electronic Service) Last date and time for application and payment for Excess Rights Shares(1) : 10 December 2024 at 5.30 p.m. (9.30 p.m. for Electronic Applications through any ATM of a Participating Bank or an Accepted Electronic Service) Expected date for issuance of Rights Shares : 16 December 2024 Expected date for crediting of Rights Shares : 18 December 2024 |
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Alignment
Elite |
26-Jul-2024 11:52
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Those investors who bought in the placement will be able to make a big profit quickly. A good time to have entered the company. | ||||
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Joelton
Supreme |
25-Jul-2024 11:35
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HG Metal Manufacturing to report net profit for 1HFY2024
HG Metal Manufacturing is expecting to report a net profit for the 1HFY2024 ended June 30, reversing from a net loss in the same period the year before.
The expected improvement in the group&rsquo s bottom line is attributed to the absence of a one-off loss for its discontinued operations in the Myanmar subsidiary. The group divested its investment in the same subsidiary in February this year.
The better net profit is also due to the higher sales volume and the depletion of high-cost inventory that was in the group&rsquo s books in FY2023, which led to better gross profit margins.
The group will release its results on or before Aug 14.
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Alignment
Elite |
24-Apr-2024 22:03
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Management' s response to SIAS on the matter is illuminating, in the sense of how flaky their rationale is for imposing such a massive dilution to shareholders. Does SIAS normally respond when they get answers like this? I imagine when the time comes there will be a significant vote to block the placement from shareholders given turkeys tend not to vote for Christmas. |
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Secret_Squirrel
Elite |
12-Apr-2024 12:49
Yells: "Stay curious but skeptical" |
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The recent Annual Report under Message to Shareholders by the chairman gives us a clearer picture of what happen all this while.
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Alignment
Elite |
09-Apr-2024 23:07
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I did read para 2.1. Actually in itself I found it comforting because there was so much detail in the disclosure. I would be more concerned if they had tried to hide it. Having a supplier as a shareholder obviously brings pros and cons - difficult to know in the abstract whether it is good or bad. I certainly would not have a problem with it were it not they were buying the shares so cheaply, especially as the company does not need the money so desperately. They need independent shareholders to vote in favour. Let' s see if there is any noise that they may struggle to get this. |
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Secret_Squirrel
Elite |
02-Apr-2024 11:21
Yells: "Stay curious but skeptical" |
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Thanks for the sharing. If you read Para 2.1 of the press release at SGX website carefully, regarding the subcriber, you will find very very interesting insight. Don' t just look at the dollars and cents only HG Metal-Announcement 25 Mar 2024-Final.ashx (sgx.com)
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Alignment
Elite |
29-Mar-2024 23:16
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Another placement to a single related party. Why? In particular, why at a discount to the current share price? The share price is trading at a significant discount to NAV. If someone wants to buy a large stake in such a good company where the shares are difficult to get hold of they should pay a premium for the privilege. Shareholders have a vote as to whether this goes through. Not sure why shareholders would vote in favour here. |
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Secret_Squirrel
Elite |
21-Sep-2023 10:57
Yells: "Stay curious but skeptical" |
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Looks a bit silly to issue share price at $0.278/share to dilute its own shareholding. According to the placement announcement, Mr. Xue and Mr. Zheng, who are private investors, had approached Ms. Xiao Xia, the Company's Executive Director and Chief Executive Officer, whom they became acquainted with through their respective business dealings, with an interest in investing in the Company as a passive investor for his own personal investment portfolio by way of the Proposed Placement. Since both private investors had approached Ms Xiao Xia, she should have asked for a higher issue price instead as it is also in her interest to do so. Lol | ||||
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chongpin
Senior |
19-Sep-2023 21:39
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On 31 Aug 2023, Placement of 25,059,406 new shares (@S$0.278/share) to raise placement consideration of S$6.97M. Xue Jun & Zheng Dazhai (12,529,703 shs each). The Issue Price represents a discount of approx. 8.85% to the volume weighted average price of S$0.305 per share based on trades done on the SGX-ST on 31 Aug 2023
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Secret_Squirrel
Elite |
10-Jul-2023 22:39
Yells: "Stay curious but skeptical" |
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Now price only 34 cents. 🤗 🤗 🤗 | ||||
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sengkang
Master |
23-Mar-2023 16:46
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New ssh paid S$24.6m for a 28.45% controlling stake. No need GO and they can rule the company. Meanwhile minority shareholders esp retail have to let market decide the pricing to exit. Will never smell anything close to the 69c paid for their ssh stake. More like half price and suck thumbs.
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ahberngh
Elite |
23-Mar-2023 15:12
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Or Chip Eng Seng
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finjungle
Veteran |
23-Mar-2023 14:37
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That was a cash out by the sellers at 69 cents. If you have any info on the new shreholders please share it. It may be anoter case of Keong Hong! |
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des_khor
Supreme |
23-Mar-2023 14:14
Yells: "Tell me who is God or Market Fortune Teller in this forum ??" |
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Trap trap trap | ||||
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sengkang
Master |
22-Mar-2023 22:37
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Notification of Share Transaction (22 March 2023) " The Board of Directors (" Board" ) of HG Metal Manufacturing Limited (" Company" ) wishes to announce that the Company has been notified that Dhu Holding has on 21 March 2023 acquired (i) 28,405,000 ordinary shares in the Company held by Flame Gold International Limited (ii) 4,758,900 ordinary shares in the Company held by Ng Joo Yow (iii) 1,442,100 ordinary shares in the Company held by Ang Gim Teck and (iv) 1,036,600 ordinary shares in the Company held by Ang Gim Thian respectively (such ordinary shares being sold by the respective Sellers, " Sale Shares" and each a " Sale Share" ), at a price of S$0.69 per Sale Share (" Transaction" ). Following completion of the Transaction, each of Dhu Holding, Ms. Xiao Xia and Mr. Yu Zengqiang is deemed interested in an aggregate of approximately 28.45% of the total issued and paid-up share capital in the Company, and Flame Gold International and Mr. Anthony Foo Sey Liang have ceased to be substantial shareholders of the Company. Ms. Xiao Xia is expected to be appointed to the Board and management of the Company in due course and Mr. Anthony Foo Sey Liang will work closely with Ms. Xiao Xia in the interim to facilitate the transition. Announcements with the relevant details will be made, when appropriate." |
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