Straits Trading narrows loss by 72.7% to $11.1m in H1

Loss per share improved to $0.024.

The Straits Trading Company Limited reported a 72.7% year-on-year (YoY) reduction in its loss attributable to shareholders, narrowing to $11.1m for the first half (H1) ended 30 June 2026, from $40.8m a year earlier.

The improvement was driven by stronger performance from its Resources business and the absence of a non-cash remeasurement loss on exchangeable bonds that was recorded in the corresponding period last year.

Revenue rose 49.5% YoY to $400m, driven by the Resources and Real Estate businesses.

Earnings before interest expense, tax, depreciation, and amortisation (EBITDA) was largely unchanged at $53.8m, compared with $55.3m in the corresponding period last year, as higher earnings from the Resources segment were offset by weaker performance in the Real Estate and Hospitality segments.

As at 30 June 2026, cash and bank balances fell to $280.4m from $488.4m at the end of 2025, mainly due to bank loan repayments.

Net gearing improved to 57.5% from 61.8% at end-2025.

Loss per share narrowed to $0.024 from $0.09 a year earlier.

By segment, the Resources business, through subsidiary Malaysia Smelting Corporation Berhad, reported a 54.4% increase in revenue to $351.2m, whilst profit after tax rose to $29.6m.

The gains were supported by higher average tin prices, increased tin sales volumes, and improved operating efficiency.

The Real Estate segment posted a 21.8% increase in revenue to $48.8m, reflecting higher contributions from the group's South Korean logistics asset, Australian logistics portfolio, and Crowne Plaza Penang Straits City.

However, its loss after tax widened to $15.5m from $13.2m, mainly due to the reclassification of foreign currency translation and hedging reserves following the disposal of certain foreign operations, as well as net foreign exchange losses.

Improved contributions from associates and joint ventures partly offset the decline.

The Hospitality segment, through its 30%-owned Far East Hospitality Holdings, reduced its loss after tax to $100k from $1.7m, supported by stronger operating performance and a currency translation gain from the appreciation of the Australian dollar.

“The environment remains uncertain, but our priorities are clear, and we are investing today in the businesses that will carry the Group forward,” said Chew Gek Khim, executive chairman of Straits Trading.

The group said it is preparing to pilot The Silver Movement, an independent living platform for seniors spanning property, operations, and services.