Nam Lee Pressed Metal (SGX:G0I) FY2025 Results — Revenue Up, Margins Surge, Cash Flow Strong. Is The Stock Still Undervalued?
Nam Lee Pressed Metal (SGX:G0I) FY2025 Results — Margins Surge, Cash Pours In, Valuation Still Modest
A simple, accounting-based walkthrough of Nam Lee’s FY2025 performance, cash flows and balance sheet — and what they might mean for long-term Singapore investors.
Published: 30 November 2025 | Based on: Nam Lee Pressed Metal FY2025 results announcement (SGX)
Key Takeaways (If You Only Have 30 Seconds)
- Revenue grew 15.7% YoY to S$208.6m, driven by stronger construction demand and a recovery in reefer container components.
- Gross profit jumped 48% to S$51.1m, with gross margin improving from 19.1% → 24.5% — a big positive surprise.
- Net profit more than doubled to S$24.8m (+103% YoY), while EPS climbed to 10.25 cents (from 5.06 cents).
- Operating cash flow surged to S$28.0m (from just S$1.1m previously), allowing the group to repay S$20.0m of loans.
- Balance sheet moved to a net cash position of about S$11.0m, with cash at S$31.9m and borrowings down to S$20.9m.
- Dividend was raised to a 3.0 cent final dividend (up from 1.5c + 0.5c special), still on a conservative ~30% payout ratio.
- Backed by multi-year construction demand (BCA expects S$39–46b annual demand from 2026–2029), Nam Lee remains a value stock with improving fundamentals.
Quick Facts
Company: Nam Lee Pressed Metal Industries Ltd
SGX Ticker: G0I
Financial period: FY2025 (full year)
Main business: Aluminium, UPVC, mild steel and stainless-steel building products, plus reefer container components.
Key markets: Singapore-focused construction and infrastructure demand, with regional exposure via containers.
Source documents: SGX results announcement • Internal FY2025 financial tables
1. Big Picture — A Breakout Year for Margins and Cash Flow
Nam Lee Pressed Metal (SGX:G0I) delivered one of its strongest full-year performances in a decade. Revenue grew at a healthy double-digit pace, profits more than doubled, and margins expanded sharply. On top of that, operating cash flow swung from almost nothing to a very strong level.
For many years, Nam Lee has traded at “deep value” multiples despite its long operating history. FY2025 shows a business that is not just surviving but getting stronger — helped by a cyclical recovery in construction, firm demand for building materials, and recovering contributions from reefer container components.
In the rest of this article, we’ll unpack these results the way a Chartered Accountant would — but in language that even a smart Primary 5 student could follow.
2. Revenue & Gross Margin — Top Line Grows, Margins Jump
Revenue: +15.7% YoY
Revenue rose from S$180.3m to S$208.6m, an increase of 15.7% year-on-year.
The growth was broad-based:
- Construction-related aluminium & steel products — benefiting from stronger local construction activity.
- Reefer container components — recovering after several softer years.
Gross Profit & Margin: The Big Surprise
Gross profit surged to S$51.1m (from S$34.4m), up about 48%. That means the amount left after paying for raw materials and direct production costs increased much faster than revenue.
Gross margin improved from 19.1% → 24.5%, driven by:
- better product mix,
- higher contribution from the construction segment, and
- lower foreign exchange losses.
Margin expansion of this scale suggests improved pricing discipline and production efficiency — not just “lucky” one-off gains.
Imagine you sell bubble tea in school. Last year you sold 180 cups and earned $19 of profit after paying for cups, ice and ingredients. This year you sold about 209 cups, but your profit after costs jumped to $25. You didn’t just sell more — you also chose better flavours, wasted less ingredients, and reduced spillage. That is what happened to Nam Lee: sales went up, but profits from each dollar of sales went up even more.
- Revenue growth of ~16% is solid for a mature, asset-heavy business.
- The 5+ percentage point improvement in gross margin is the real highlight and deserves close monitoring in future years.
- Drivers (product mix, construction demand, lower FX losses) are mostly operational rather than one-off accounting items.
- If Nam Lee can sustain gross margins in the low-20s range, its earnings power is structurally higher than in the past.
- Investors should watch future gross margin trends to judge whether FY2025 was a “step-up” or a one-time spike.
3. Profitability & EPS — Net Profit More Than Doubles
Net profit doubled to S$24.8m from S$12.2m (+103%). This reflects both higher sales volume and much better margins.
Operating profit margin rose significantly, helped by:
- higher sales volume,
- lower foreign exchange losses, and
- better cost management.
Selling and distribution expenses remained stable, while administrative expenses rose due to performance bonuses — which is a natural outcome of stronger profitability.
Earnings per share (EPS) climbed to 10.25 cents from 5.06 cents. In other words, each share now “earns” roughly double what it earned last year.
Think of Nam Lee as a group project where every share is one teammate. Last year, each teammate scored 5 marks. This year, each teammate scored 10 marks. The group didn’t suddenly become superheroes — they just worked smarter, wasted less, and got better marks for the same amount of homework. That “mark per teammate” is like EPS for shareholders.
- The doubling in net profit is largely supported by operating performance (volume + margin), not one-off gains.
- Performance bonuses flowing through admin expenses are a healthy sign: management is rewarded for real profit improvement.
- With EPS at 10.25 cents, even a modest P/E multiple can translate into attractive upside from low starting valuation levels.
- Investors should still be cautious about extrapolating 100% profit growth — construction is cyclical — but FY2025 has likely reset the earnings base higher.
4. Segment Performance — UPVC Shines, Steel and Aluminium Solid
Aluminium Segment
- Revenue: S$134.7m (up YoY).
- Segment profit: S$8.75m.
The aluminium segment remains the stable backbone of the company, supported by residential and commercial building demand.
UPVC Segment
- Revenue: S$38.1m.
- Segment profit: S$12.3m.
This was the strongest performing segment, delivering the highest segment profit margin and a major contribution to overall profitability.
Mild Steel & Stainless Steel
- Revenue: S$35.7m.
- Segment profit: S$10.7m.
Demand from industrial and infrastructure projects helped lift earnings in this segment.
Imagine Nam Lee runs three mini shops inside one big shop: an aluminium shop, a plastic (UPVC) shop, and a steel shop. All three shops did okay, but the plastic shop made the most profit for every dollar of sales. If you were the boss, you would smile most at that shop and think about how to grow it carefully.
- The earnings profile is nicely diversified across aluminium, UPVC and steel, reducing reliance on any single product line.
- UPVC’s strong margin suggests it may be a structural profit centre — worth watching for capacity expansion or further product development.
- Segment data confirms that the earnings uplift is not coming from a single “hot” product that could evaporate quickly.
- Investors should monitor segment margins over time to see if FY2025 levels are sustainable.
5. Balance Sheet / Debt — Now in Net Cash
Nam Lee’s balance sheet is now in excellent condition.
Key Highlights
- Cash: S$31.9m.
- Borrowings: S$20.9m (reduced from S$41.0m).
- Net cash position: around +S$11.0m.
- Trade receivables are higher in line with sales growth.
- Inventories are stable year-on-year.
Net Asset Value (NAV)
NAV per share increased to 77.29 cents (from 69.39 cents). Historically, Nam Lee shares have traded significantly below NAV, so this step-up is meaningful for value-focused investors.
Think of the balance sheet like your room. Cash is your pocket money, borrowings are what you owe your parents, and NAV is the total value of all your toys and books if you sold everything. Nam Lee now has more pocket money than debts, and the “value of all its toys” per share went up. That makes the room feel safer and richer at the same time.
- Transitioning from net debt to net cash materially reduces financial risk.
- Loan repayments of S$20.0m in the year were funded from internal cash flow, a strong sign of balance sheet discipline.
- Higher trade receivables are expected with higher revenue, but working capital should be monitored.
- Persistent trading at a large discount to NAV could offer a valuation cushion if asset values are realistic.
6. Cash Flow — From Trickle to Strong Inflow
Operating cash flow jumped to S$28.0m from just S$1.1m previously — a huge improvement.
Main drivers:
- Higher underlying profit.
- Better working capital discipline (e.g. collections and inventory).
- Lower FX losses, which previously hurt cash and profit.
Capital expenditure (capex) remained moderate at about S$1.6m.
With this strong cash generation, the company repaid S$20.0m in loans and paid roughly S$4.8m in dividends — all from internal funds.
Profit is like marks in your exam; cash flow is like actual pocket money in your wallet. Last year, Nam Lee had nice marks but very little pocket money. This year, it not only scored well but also collected most of the money from customers on time. That is why it could pay down a lot of its “debts to parents” and still treat shareholders to some pocket money.
- Cash flow quality looks high: cash generation broadly matches or exceeds accounting profit.
- Moderate capex suggests the business can grow without heavy additional spending (at least in the near term).
- Ability to repay S$20m of loans and still pay dividends demonstrates healthy cash coverage.
- For long-term investors, strong and repeatable operating cash flow is arguably more important than one-off profit spikes.
7. Dividends — Raised, Yet Still Conservative
FY2025 dividend was raised to a 3.0 cent final dividend, double last year’s combination of 1.5c + 0.5c special.
The payout ratio remains conservative at around 30%, leaving plenty of earnings retained within the company.
Given the net cash balance sheet and strong cash generation, the current dividend level appears sustainable, with room for flexibility if future profits remain robust.
Imagine you earn $10 of allowance from doing chores. You give your grandparents $3 as a gift and keep $7 to save for a new bike. Nam Lee is doing something similar: it gives about 30% of its “earnings allowance” to shareholders as dividends and keeps the rest inside the company to grow and stay strong.
- Dividend uplift aligns with stronger earnings rather than aggressive financial engineering.
- A ~30% payout ratio strikes a reasonable balance between rewarding shareholders and reinforcing the balance sheet.
- If earnings remain at FY2025 levels or grow, current dividends could offer an attractive yield at deep-value share prices.
- Dividend investors should still remember that construction cycles can be lumpy; a conservative payout gives management flexibility in weaker years.
8. Industry Outlook — Construction Upswing as Tailwind
According to the Building and Construction Authority (BCA), Singapore construction demand is expected to average about S$39–46 billion per year from 2026–2029.
Nam Lee’s key segments — aluminium, UPVC, and steel products — benefit directly from:
- HDB building programmes,
- infrastructure upgrades,
- industrial facilities, and
- the recovery in commercial projects.
This backdrop creates multi-year tailwinds for the business, although execution, competition and cost control will still matter greatly.
9. Ratios & Trend Snapshot — Margins and Balance Sheet Improving
A simplified snapshot comparing FY2024 and FY2025:
| Metric | FY2024 | FY2025 | Trend |
|---|---|---|---|
| Revenue (S$m) | 180.3 | 208.6 | Moderate improvement |
| Gross margin (%) | 19.1 | 24.5 | Strong expansion |
| Net profit (S$m) | 12.2 | 24.8 | More than doubled |
| EPS (cents) | 5.06 | 10.25 | Up ~103% |
| Net cash / (debt) (S$m) | Approx. -9.1 | Approx. +11.0 | Moved to net cash |
| NAV per share (cents) | 69.39 | 77.29 | Steady climb |
10. FAQ
Q1. Is Nam Lee financially strong?
Yes. The group is now in a net cash position with strong operating cash flow and a higher NAV per share. This significantly reduces financial risk compared to a highly leveraged company.
Q2. Is the dividend sustainable?
With a payout ratio of around 30%, a net cash balance sheet, and strong FY2025 earnings, the dividend level looks sustainable — assuming no major downturn in construction demand.
Q3. What drives Nam Lee’s earnings?
Mainly aluminium, UPVC and steel building products linked to Singapore construction demand, as well as contributions from reefer container components. Stronger construction activity tends to support better revenue and margins.
Q4. Does Nam Lee have growth potential?
Yes. BCA expects robust construction demand of S$39–46b annually from 2026–2029, which underpins multi-year demand for Nam Lee’s products, if it can maintain competitiveness and manage costs.
Q5. What are the key risks?
Main risks include foreign exchange volatility (e.g. Malaysian Ringgit), potential construction slowdown or project delays, competitive pressure from regional players, and the working-capital intensity of the business (receivables and inventories).
11. My Overall Take as The Accounting Investor
If I had to explain Nam Lee’s FY2025 in one line to an 11-year-old, I’d say: “This is a boring-looking company that just had a very not-boring year — it sold more, earned more from each sale, kept more cash, and still gave its owners a bigger pocket-money reward.”
From an accounting-trained investor’s lens, here’s how I see it:
- Business quality: Solid, asset-backed manufacturing linked to essential construction needs. Not glamorous, but useful.
- Earnings quality: FY2025 profit growth is largely operational (volume + margin) and strongly backed by cash flow.
- Balance sheet strength: Moving into net cash territory is a major de-risking milestone.
- Dividend profile: Dividend was raised while keeping payout modest, which is sensible for a cyclical sector.
- Valuation: The company has long traded below NAV and likely still sits on a single-digit P/E based on FY2025 EPS — classic “deep value with improving fundamentals”.
- Key watchpoints: Construction cycle health, sustained gross margin levels, and discipline in managing receivables and inventories.
My simple conclusion: Nam Lee looks like a fundamentally strong, still-undervalued SGX small-cap that is finally enjoying both sector tailwinds and internal execution gains. For patient investors who accept construction cyclicality, it deserves at least a place on the watchlist — and possibly a place in a diversified, value-oriented portfolio after your own due diligence.
About The Author
The Accounting Investor is a Singapore-based investment blogger and Chartered Accountant–trained analyst who enjoys explaining company accounts in plain English for busy working adults (and curious teens).
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Disclaimer: This post is for education and general information only. It is not a recommendation to buy or sell any security, and it does not take into account your individual financial situation, objectives or risk tolerance. Always do your own research or consult a licensed financial adviser before making any investment decisions. The author may or may not hold shares in the companies mentioned at the time of writing and is under no obligation to update this post.
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