http://www.businesstimes.com.sg/sub/...05540,00.html?

Published November 11, 2010

UE almost trebles Q3 net to $34.5m

By KAREN NG


IN yet another buoyant quarter, United Engineers (UE) saw its third-quarter net profit surge to $34.5 million - close to triple the $12.7 million for the year-ago comparative period.

The three months ended Sept 30 registered a 40 per cent jump in revenue from $169.5 million to $237 million as sales of residential apartments nearly trebled from $46.6 million to $137.6 million, more than offsetting a 34 per cent fall in construction contract revenue to $48.3 million from $72.8 million. Gross profit margin rose too - to 29.1 per cent from 24.2 per cent.

Q3 earnings per share were 13.2 cents, up from 5.2 cents.

The group - which is involved in engineering, construction, and property development and investment - attributed the strong results to 'progressive recognition of revenue from property sales at The Rochester in one-north and Park Central @ AMK'.

As at September, the group had incurred development expenditure of $470 million for its projects, including UE BizHub East in Changi Business Park and the Sengkang East Avenue/Buang- kok Drive executive condominium.

Group managing director and chief executive Jackson Yap said: 'Leasing response to Rochester Mall, which is located in one-north and is expected to obtain TOP by 2011, has been encouraging due to its proximity to offices in Fusionopolis and Biopolis. There is also the lack of a big shopping mall in the Commonwealth/Holland area.'

Mr Yap said he is confident about upcoming projects such as UE BizHub East, saying leasing has 'been very encouraging' as 'UE BizHub East will enjoy the confluence of two MRT lines' and already has a 'confirmed anchor tenant'. NTUC's FairPrice Xtra will set up a hypermart there.

As for UE BizHub Central, Mr Yap said 'the bulk of the firm's operations will be centralised there by the end of this year'. UE BizHub Central also houses MNCs, he noted.

Cash and cash equivalents at Sept 30 were $249.13 million, down from $305.6 million a year earlier.

Strong results for the three quarters brought nine-month net profit to $96.9 million - almost triple the $32.4 million in the year-ago period - while revenue grew 35 per cent from $485.6 million to $655.8 million.

'Currently, the group has operations in China, Malaysia, Indonesia, Brunei and Vietnam, among various countries, which make up about 30 per cent of our operations,' Mr Yap said.

'Our biggest overseas market is China, where waste-water treatment and medical waste treatment are our main operations.'

Net asset value per share was $3.62 on Sept 30, versus $3.43 at end-2009. The stock closed two cents higher at $2.59 yesterday.