VICOM's net profit in the second half of the year surged nearly 78% to 26.9 million yuan | Lianhe Zaobao

The Intelligent On-Board Unit (OBU) project has driven strong growth for the vehicle inspection service company VICOM in the fiscal year 2025, with net profit in the second half increasing by 77.6% year-on-year to 26.9 million yuan. The board of directors has proposed a year-end dividend of 5.3 cents per share, up from 3 cents per share a year ago. The company, listed on the main board of the Singapore Exchange, reported its performance after the market closed on Friday (February 20), noting that revenue in the second half increased by 54.4% year-on-year to 97.6 million yuan, primarily driven by the Intelligent On-Board Unit project. The group's operating costs in the second half rose by 42.4% to 64.7 million yuan, with earnings per share increasing by 77.3% year-on-year to 7.59 cents. The company will pay dividends on May 8, with the stock registration deadline set for April 30. Including the interim dividend already distributed, the total annual dividend increased by 45% from 5.80 cents in the fiscal year 2024 to 8.4 cents, with a payout ratio of 70%. In the fiscal year 2025, the group's revenue increased by 40.1% to 167.4 million yuan, mainly driven by the Intelligent On-Board Unit project; net profit increased by 45.1% to 42.5 million yuan. Further Reading VICOM unveils new integrated hub at Jalan Papan with a new facility worth 60 million yuan, fully operational in the second half VICOM's net profit in the third quarter increased by 45% to 9.9 million yuan Management pointed out that the company, as a partner in the Land Transport Authority's ERP 2.0 migration project, has installed over 251,000 Intelligent On-Board Units, ranking first among four authorized partners. Meanwhile, the group's vehicle inspection business maintains its market leadership with a market share of 72.3%. The non-vehicle inspection business also performed well However, the group expects the overall demand for testing services to decline in the coming year. The company stated: "As the installation of smart driving devices is expected to be largely completed by 2025, the demand for vehicle testing and related work is anticipated to gradually decrease." On the other hand, the group expects that with the comprehensive operation of the integrated testing center located at Jalan Papan in the second half of the year, the new testing capacity will enhance the demand for non-vehicle testing. VICOM's stock price rose 1.18% on Friday, closing at SGD 1.72