http://www.businesstimes.com.sg/arch...-fy13-20130515

Published May 15, 2013

Sim Lian posts Q3 profit of $32.9m; upbeat about FY13

By Kalpana Rashiwala


PROPERTY and construction group Sim Lian has posted a net profit of $32.9 million for the third quarter ended March 31, 2013, a 45 per cent year-on-year improvement.

This came on the back of a 37 per cent increase in revenue to $195.7 million, partly offset by a 40 per cent rise in contract costs to $148.4 million.

The increase in contract costs was in tandem with the increase in revenue, as well as due to higher labour and raw material costs.

Sim Lian said revenue from the property development division increased 76.8 per cent to $158 million; that from the construction division fell 32.6 per cent to $30.7 million, with the dip due mainly to there being fewer projects in Q3FY2013 than in Q3FY2012.

The group's third-quarter earnings per share rose from 2.5 cents to 3.3 cents.

Net asset value per share stood at 80.5 cents at end-March 2013, up from 76.1 cents at end-June 2012. The counter ended trading unchanged at 93 cents yesterday.

Sim Lian released its results after the market closed.

For the first nine months ended March 31, 2013, Sim Lian's net profit slipped 27 per cent to $117.6 milion. Revenue climbed 11 per cent to $594.4 million.

At the 546-unit Hillion Residences condo in Jelebu Road/Petir Road launched in March, 217 of the 250 units released have been sold. Sim Lian said: "However, this project is not expected to contribute significantly to the group's results for FY2013."

Based on data the Urban Redevelopment Authority collated from monthly submissions of housing sales data from developers, 191 units were sold at Hillion Residences in March at a median price of $1,340 psf.

Also in March, the group's 50-per cent joint venture company Sim Lian JV (Vision) clinched a 99-year leasehold commercial site along Venture Avenue in Jurong East. Its winning bid of $701 million works out to $1,009 per square foot per plot ratio.

In its results statement yesterday, Sim Lian said: "The group will continue to be selective in replenishing its land bank. We will continue to keep a watchful eye on macro conditions as well as continue to explore opportunities to acquire investment properties for recurring income."

The group expects to achieve a set of profitable operating results for FY2013.