Low Keng Huat (Singapore) has announced that its net profit in the first quarter rose 14 percent to S$21 million, despite a 56 percent decline in group revenue.
The company said its revenue for the quarter dropped to S$39.80 million, from S$89.82 million over the same period last year. This was mainly attributed to the decline in construction activity, as investment and development revenue were not significant.
As for earnings, the company said the strong net profit for the period was largely due to increased contributions from construction projects such as 6 Battery Road and nex at Serangoon Central Mall, as well as profit adjustments for completed works at Hard Rock Hotel in Sentosa and Meritus Mandarin Hotel.
Meanwhile, net profit attributable to equity-holders reached S$21.56 million in the first quarter, up from S$18.99 million over the same period last year. This translates to earnings per share of 2.92 cents, up from 2.57 cents a year earlier.
The company said it expects low land tender prices due to the increases in land supply and government public housing developments. However, it expects construction costs to increase.
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