Offshore

Illiquid
Four months after I started covering this tiny Singaporean diesel genset company (and telling everyone in Singapore about it), it’s finally getting mainstream financial press coverage again.

XMH

Between Jan 5 and 6, XMH : BQF 0%chairman and managing director Tan Tin Yeow acquired 92,600 shares at S$1.53 apiece. This increased his direct interest to 64.72 per cent from 64.63 per cent.

His preceding transaction was on Dec 16, with 500,000 shares acquired at S$1.50 each.

Tan was appointed chairman and CEO in 2010 and re-designated as chairman and managing director in 2016. He oversees the group’s strategy, corporate planning, business development and acquisitions, and was instrumental in establishing the distribution arm and securing exclusive distributorships.
He has more than 40 years of experience in marine and industrial diesel engines, and previously worked at Meng Wah Machinery Work, a partnership founded by Tan Tum Beng.

Since listing in 2011, XMH has generated a 6 per cent average annualised total return. Founded in 1955 as a small machinery repair shop on Kitchener Road, the company has grown into a trusted provider of diesel engines, propulsion systems and power solutions for marine and industrial customers across Asia.

The group presently operates three reportable segments: distribution (propulsion engines), after-sales (services, spare parts and trading), and project (manufacturing and commissioning of power generator sets).

Last year, Tan relayed the group’s commitment to driving sustainable growth and creating enduring value for all stakeholders. On Dec 12, the group reported its H1 (ended Oct 31) results for the 2026 financial year, with revenue up 40.5 per cent and profit after tax rising 23 per cent from H1 FY2025. This was on the back of robust market demand and contributions from both distribution and project segments.

Its net cash from operating activities surged by S$12.2 million to S$13.2 million in H1 FY2026, driven by lower inventories and contract assets, while investing activities generated S$12.3 million from a partial subsidiary disposal.
Net cash used in financing activities rose to S$29.7 million in H1 FY2026 from S$11.1 million in the year-ago period, due mainly to net repayments of revolving credit facilities and trade bills, as well as higher dividend payments of S$8.8 million versus S$3.8 million in H1 FY2025.

Supported by a healthy order book, the group said it expects its business activities to remain resilient in H2 FY2026, providing good visibility for the financial year.

Management is optimistic about growth prospects, but is nonetheless cautious over global uncertainties, citing cost discipline, inventory management and operational efficiency as its priorities to safeguard margins.

In November 2025, XMH joined the MSCI Singapore Micro Cap Index. The stock’s average daily turnover has increased from near S$7,000 in 2024, to S$15,000 in H1 2025, and S$85,000 in H2 2025. The stock maintains a return-on-equity ratio of 37 per cent and a price-to-earnings ratio of 6x.
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