http://www.businesstimes.com.sg/arch...rofit-20130824

Published August 24, 2013

Lion Teck Chiang posts 9.8% rise in FY13 profit

Revenue up 9.1%, boosted by property development and steel segments

By Mindy Tan [email protected]


LION Teck Chiang's net profit for the full year ended June rose 9.8 per cent to $36.8 million, while revenue rose 9.1 per cent to $190.9 million.

The boost in revenue was mainly from its steel and property development segments, said the investment holding company, which engages in property investment and development, and steel trading businesses.

For the full year, steel turnover increased by $10.9 million to $160.9 million due to higher tonnage delivered, while revenue from property development increased by 25.7 per cent to $21.5 million. This was due to higher turnover in Malaysia, mainly from industrial park development.

Turnover for property rental improved by $0.7 million to $8.5 million.

Earnings per share were 23.55 cents, up from 21.45 cents.

A first and final dividend of 1.25 cents per share was declared, versus one cent per share previously.

The company said that demand for steel is expected to remain firm from the local construction sector. However, since the end of the financial year, international prices of steel have softened, and the USD/SGD exchange rate has been unstable.

In terms of property development, demand and prices are expected to be reined in by the cooling measures in Singapore. The group's development of industrial park land in Malaysia on the other hand is likely to benefit from the government's efforts to promote foreign investments.

The group expects its investment properties in Singapore to continue to enjoy high occupancy and better rental rates as leases are renewed.

Separately, the company announced that it has appointed Ong Teong Wan, currently an independent director and audit committee chairman of the company, as lead independent director, based on the recommendations of the nominating committee.

Lion Teck Chiang's counter rose two cents to end trading at 80 cents yesterday.