1HFY2010

- Revenue increases 24.4% to S$126.6 million

- Gross Profit margin at 22.2%

- Net Profit surges 279.3% to S$15.5 million

- Earnings per share at 5.11 cents for 1HFY2010

- Interim dividend of one cent per share (one-tier tax exempt)

Singapore, November 11, 2009

“Group”), a specialist integrated engineering group for the oil-and-gas, petrochemical

and pharmaceutical industries, today reported a 279.3% surge in net profit

attributable to equity holders (“Net Profit”) to S$15.5 million for the first half ended

September 30, 2009 (“1HFY2010”), from S$4.1 million in 1HFY2009. This was

achieved on the back of a 24.4% growth in revenue to S$126.6 million from S$101.7

million over the same corresponding period.

 

Said Mr Frankie Tan, Chairman and CEO of Hiap Seng: “We are very pleased to

have achieved a record for our net profit in 1HFY2010 and this sets the momentum

for a healthy year ahead for Hiap Seng.”

“This half-year net profit has in fact surpassed our previous record high of S$15.4

million achieved for the full-year of FY2007.”

“Despite a very challenging year amidst the economic downturn, our prudent cost

control measures and improved productivity have paid off and we have registered

good gross margin improvement.”

“Our business continues to be robust, backed by existing order books of S$199

million. As one of Singapore’s leading engineering groups focusing on the exciting

oil-and-gas, petrochemical and pharmaceutical industries, coupled with a healthy

balance sheet, an experienced workforce and ample facilities, we are confident of

capturing opportunities ahead to enhance shareholder value.”

Review of 2QFY2010 Performance

Quarter-to-quarter, the Group recorded a 34.5% increase in revenue to S$70.0

million in 2QFY2010 as compared to S$52.0 million in 2QFY2009 as a result of a

higher percentage of completion in a number of projects, as well as savings from

continued efforts in cost controls and improved productivity during the period under

review.

With improvement in both revenue and margins, Group net profit attributable to

shareholders surged 553% to S$8.0 million in 2QFY2010 from S$1.2 million in

2QFY2009.

As at September 30, 2009, the Group’s cash and cash equivalents amounted to

S$19.3 million as compared to S$11.9 million as at September 30, 2008.

 

To reward its shareholders, Hiap Seng has declared an interim, one-tier tax-exempt

dividend of 1.0 cent per ordinary share, doubling that of the previous corresponding

period, which is expected to be paid on January 18, 2010.

Outlook

The outlook for the oil-and-gas, petrochemical and pharmaceutical industries which

the Group serves remains positive and it will continue with its efforts to control costs,

improve productivity and explore new business opportunities in order to enhance

shareholder value.– Hiap Seng Engineering Ltd (“Hiap Seng” or the