Sim Lian Group, a property and construction group, has posted a 38-percent year-on-year increase in its net profit to $18.4 million for Q3 ended March 31, saying it expects to achieve a set of profitable operating results this year.
The improved bottom line during Q3 was on the back of a 132-percent year-on-year increase in revenue to $203.2 million. The topline was boosted by a 164-percent surge in revenue from the property development division to $151 million in Q3 2010, from $57.1 million over the same period last year, said Sim Lian.
This was largely attributed to higher percentage recognition of revenue from The Lincoln Residences, Parc Lumiere, Clover By The Park and Rochelle at Newton residential projects.
Sim Lian reported an 83-percent increase in revenue from external projects of its construction division to $46.6 million in Q3 2010, from $25.5 million in Q3 2009. The surge was due mainly to a higher percentage of completion recorded. “The construction division remains selective in all tenders to ensure jobs are secured with reasonable prices and margins,” said Sim Lian.
“As a whole, the development projects of the group are expected to contribute positively to the group’s performance in FY 2010,” it added.
For the nine months ended March 31, Sim Lian’s group net profit climbed 69 percent year-on-year to $76.6 million. Revenue also rose 28 percent to $564.1 million over the same period.
In March, a 99-year-leasehold residential site at Tampines Ave 1/10 facing Bedok Reservoir was awarded to the group. Sim Lian plans to develop a condo on the site, comprising almost 700 units that range from two-bedroom apartments to penthouses with five bedrooms. It will launch the project sometime in October-December 2010.
Sim Lian will also release a landed housing development in Senai, Johor, comprising 120 terrace houses this year.
Earnings per share (EPS) climbed to 3.24 cents for the quarter just ended, from 2.34 cents over the same quarter in 2009. Nine-month EPS increased from 7.98 cents to 13.49 cents.
Net asset value per share rose to 50.15 cents as at end-March 2010, from 38.07 cents as at end-June 2009.