Construction and property group Chip Eng Seng Corp Ltd has posted a 14.4 percent decline in net profit for the second quarter, down to S$17.71 million from S$20.7 million over the same period last year.
The company’s revenue for the period also fell 31.1 percent to SS$86 million, from S$125 million a year ago.
Q2 revenue for the construction division also declined 46.4 percent to S$45 million, attributed to the absence of contributions from CityVista Residences, Grange Infinite and The Parc Condominium projects.
Chip Eng Seng noted that revenue contribution was derived from on-going projects like Punggol West C25 and Queenstown RC25, while new construction projects like Belysa, Prive and Hougang N9C12 also contributed to revenue for the quarter.
Meanwhile, its revenue from property development was S$40 million, derived mainly from the progressive recognition of revenue from My Manhattan and Oasis@Elias.
Looking forward, Lim Tiam Seng, Executive Chairman of Chip Eng Seng, said the company will be monitoring developments in the local real estate market, in view of growing uncertainty in the global economy and financial markets.
“We are still optimistic about the longer prospects for Singapore residential properties, especially in the suburban areas,” he noted. “Our construction arm, with its track record and experience, is also well positioned to benefit from the ramp-up in building of BTO flats. We are actively participating in tenders for such projects.”
The company expects to launch its 488-unit DBSS project in Bedok Reservoir and 136-unit condominium project in Fort Road in the coming months, depending on market conditions and sentiment.
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