Property developer Low Keng Huat’s net profit for the second quarter ended 31 July increased 54 percent year-on-year to S$26.9 million.
At the same time, revenue rose 17 percent year-on-year to S$35.2 million, supported by the start of construction of Parkland Residences (pictured) and Paya Lebar Square.
However, the company’s gross profit dropped 39 percent as cost of sales surged 136 percent to S$22.8 million.
Low Keng Huat’s Q2 profit was driven by higher contributions from joint ventures and associated companies.
Net profit climbed three percent to S$40.1 million during the first half of the fiscal year, while revenue fell two percent to S$68.4 million.
Strong revenue was seen across all segments, including property development, hotel and food and beverage, as well as construction.
Revenue in the company’s construction division climbed 13.1 percent in the second quarter to S$19.9 million.
Moving forward, the company expects the mass market property sector to remain strong despite a slowdown in the luxury market due to the cooling measures.
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