- Skylink (SGX:XZB) achieved robust results in 1H2026, driven primarily by fleet expansion and growing contributions from its engineering division.
- Revenue increased 33.8% y-o-y to S$16.1 million, supported by stronger lease income and maiden revenue from new engineering contracts. Gross profit rose 12.7% y-o-y to S$3.9 million, though gross margin declined from 28.4% to 23.9%, reflecting a shift in revenue mix and initial ramp-up costs in the engineering segment.
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Strategic Placement and Capital Allocation.
- Skylink has completed a share placement that raised S$7.02 million in gross proceeds with the issuance of 26 million new shares at an issue price of S$0.27 each in February.
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1) Loan Book Expansion and Strategic M&A.
- The majority of the capital, equating to approximately S$4.78 million, is strictly earmarked to aggressively scale the SKCR credit business. By expanding the equity base backing the loan portfolio, Skylink can negotiate vastly larger block discounting facilities from its banking partners, generating a compounding multiplier effect on its capacity to issue high-margin hire-purchase agreements.
- Furthermore, management has indicated a general openness to evaluating potential synergistic mergers and acquisitions.
2) Electric Vehicle Fleet Proliferation.
- Read more at SGinvestors.io.
