http://www.straitstimes.com/archive/...rofit-20130205

COMPANIES

Sim Lian, Wing Tai see rosy Q2 net profit

Published on Feb 05, 2013

By Magdalen Ng


PROPERTY developers Sim Lian Group and Wing Tai Holdings both reported healthy jumps in second-quarter net profit.

Sim Lian, whose developments include The Tampines Trilliant and Waterview, yesterday posted a second-quarter net profit of $47.5 million, up 35 per cent from a year earlier.

This was on the back of a 64 per cent jump in revenue to $208.3 million for the three months ended Dec 31.

Sim Lian said the group's profit increase was due to higher revenue achieved in its property development business, which grew 109 per cent to $170.1 million after contributions from several development projects.

However, revenue from its construction division fell 19 per cent to $31.7 million as there were fewer projects in the quarter compared with a year ago.

Contract costs were up 89 per cent to $148.2 million, due to higher labour and raw material costs.

In its profit report, Sim Lian described the latest property cooling measures as the "most severe and most encompassing to date".

It said the group will continue to be selective in replenishing its landbank.

Quarterly earnings per share came to 5.1 cents, up from last year's 4.1 cents. Net asset value per share on Dec 31 was 77.3 cents, up from 76.1 cents on June 30.

Wing Tai's second-quarter net profit surged 159 per cent from the same quarter last year, to $88.7 million.

Quarterly revenue was up 73 per cent to $321.8 million for the three months ended Dec 31.

The boost was helped by recognition of progressive sales of Foresque Residences and L'VIV. The cost of sales correspondingly jumped by 89 per cent, from last year's $104.1 million to $197.1 million.

Quarterly earnings per share came to 11.32 cents, up from 4.38 cents a year earlier, while net asset value rose to $2.95 on Dec 31, from $2.85 on June 30.

Sim Lian shares closed four cents higher at 87 cents yesterday. Wing Tai shares fell one cent to $1.905.

[email protected]