To The Moon

Singapore equities entered the second half from a position of strength. The $Straits Times Index(STI.SI)$ 's discount to Bloomberg consensus target price has narrowed materially from the double-digit levels that prevailed through much of the past few years, shifting the focus from valuation expansion to earnings delivery.

With indicative STI EPS growth around 12% based on current LSEG Workspace consensus forecasts, investors are likely to place greater emphasis on profits, cash flow, dividends and capital discipline.

That makes the post-1H26 earnings season an important test of earnings breadth. Consensus forecasts continue to point to following-FY earnings growth across all sectors, although REITs, Consumer Cyclicals and Utilities are presently in negative current-FY growth territory, highlighting a more uneven near-term earnings path.

Beyond the sector outlook, more than 20 SGX-listed companies have moved from comparable-period losses to profits in their latest announced results, spanning industrial, manufacturing, consumer, property-related and China-exposed companies. While the drivers ranged from operating improvement and margin recovery to fair-value, commodity-price and comparison effects, the group provides a useful company-level perspective on where earnings bases are rebuilding across the market.

20 of the companies are tabled below.

The companies spanned manufacturing, industrial, consumer, property-related and China-exposed segments, with industrial and manufacturing names featuring prominently among the profit recoveries. Other SGX-listed companies, including $Aedge Group(XVG.SI)$ and $UG HEALTHCARE CORPORATION LTD(41A.SI)$ , have also guided a return to profitability. 

The drivers for the above turnarounds were also varied. $IPS Securex(42N.SI)$ and $NeraTel(N01.SI)$ pointed to more operating-based improvement, with stronger project execution, higher gross profit, lower foreign-exchange and restructuring drag, and lower finance costs.

$Fuxing China(AWK.SI)$ also showed margin and finance-cost improvement, while $Shanghai Turbo(AWM.SI)$ , $Shanaya(SES.SI)$ and $Vins Holdings(VIN.SI)$ indicated revenue or margin recovery. $Soon Hock(SHE.SI)$ , $Trendlines(42T.SI)$ , $Creative(C76.SI)$ and $Heeton(5DP.SI)$ were more affected by event- or accounting-related items, including project revenue recognition, portfolio fair-value gains, tariff refunds, disposal gains or fair-value movements. $Food Empire(F03.SI)$ ' swing was helped by the absence of the prior-period fair-value loss on its Renaissance Energy investment, while $Ouhua Energy(AJ2.SI)$ ' recovery was driven by stronger LPG margins.

While the profit recoveries were broad-based, the underlying drivers differed materially. The following three companies illustrate some of the key turnaround themes emerging from the current earnings season.

Ouhua Energy: Higher LPG Margins Support Earnings Rebound

Ouhua Energy Holdings returned to profitability in 1H26, with attributable profit of RMB95.8 million versus an attributable loss of RMB33.5 million in 1H25. The turnaround reflected stronger LPG margins as prices rose following Middle East-related supply disruptions, supported by lower-cost inventory secured before the conflict escalation. Revenue declined 8.3% year-on-year as LPG sales volumes fell, but gross profit increased sharply as the Group benefited from a wider spread between procurement costs and selling prices. Lower finance costs also provided support following a reduction in borrowings. The result highlights how commodity-price movements and procurement timing can materially influence earnings outcomes in the LPG distribution business.

Food Empire: Revenue Growth Supports Return to Profitability

Food Empire Holdings returned to profitability in 1H26, reporting attributable profit of US$35.4 million versus an attributable loss of US$1.5 million in 1H25. The turnaround was aided by the absence of the prior-period fair-value loss on its Renaissance Energy investment, while revenue increased 15.0% to a record US$315.1 million. Growth was broad-based across all reporting regions, led by Russia and Central Asia, where revenue increased 24.6% and 33.6%, respectively. The stronger performance supported a higher interim dividend of 4.0 Singapore cents per share, up from 3.0 Singapore cents a year earlier.

Nera Telecommunications: Order Growth Supports Profit Turnaround

Nera Telecommunications (NeraTel) returned to profitability in 1H26, with attributable profit of S$0.5 million versus an attributable loss of S$1.8 million in 1H25. Revenue increased 1.1% to S$45.2 million, while gross profit rose 8.1% to S$10.0 million. The improvement also reflected lower foreign-exchange losses, reduced restructuring costs and lower finance expenses, while order intake increased 40.9% to S$56.8 million and the order backlog stood at S$116.1 million at end-June.