http://www.businesstimes.com.sg/comp...ians-q2-profit

Construction, property development buoy Sim Lian's Q2 profit

By Kalpana Rashiwala

[email protected]

@KalpanaBT

Feb 13, 2016


STRONG improvements in its revenue from both the property development and construction divisions enabled Sim Lian Group to book a 59 per cent increase in second-quarter net profit to S$40.49 million from S$25.48 million in the same quarter of the preceding year.

Strata sales in the office tower of the group's KL Trillion project along Jalan Tun Razak in the Malaysian capital, Kuala Lumpur, were the biggest contributor to revenue and profit in the property development segment for the group in Q2 FY2016. The 33-storey office tower was completed during the quarter.

It is part of a mixed development that will also have two 39-storey blocks of serviced residences which are expected to be completed in FY2017.

The group's revenue more than doubled to S$194.33 million for the quarter ended Dec 31, 2015, from S$91.38 million in the same period of the preceding year. Revenue from the property development division jumped to S$75.17 million in Q2 FY2016 from S$26.30 million in Q2 FY2015. Revenue from the construction division climbed 95 per cent to S$105.51 million from S$54.04 million previously.

Earnings per share rose to 4.02 Singapore cents for Q2 FY2016 from 2.53 Singapore cents for Q2 FY2015. Net asset value per share stood at S$1.13 as at end-December 2015, slightly lower than the S$1.16 at end-June 2015.

The counter ended unchanged at 76 Singapore cents on the Singapore bourse on Friday.

Net profit for the first half decreased 60 per cent to S$39.08 million. Revenue fell 40 per cent to S$283.96 million.

Sim Lian said in its results statement: "The group remains committed to seeking strategic investment opportunities for its continued growth and is focused on building a stable base of recurring income to smoothen its fluctuating profits from property development division."

Sim Lian added that it expects to achieve profitable operating results for FY2016. "Following the adoption of INT FRS 115 with effect from July 1, 2010, the group expects greater fluctuations in our future earnings as most of the group's ongoing projects (including those of our 50:50 joint ventures) are being accounted for using the completion of contract method."

In Singapore, Sim Lian has sold more than 400 of the 452 units released to date at Vision Exchange in Jurong East. Vision Exchange is a 25-storey tower with a total of 740 units consisting of 640 offices, 53 medical suites and 47 restaurants.

At its Hillion Residences project in Bukit Panjang, the group has sold slightly more than half of the total of 546 residential units.

Sim Lian will open its executive condo project in Choa Chua Kang, Wandervale, for e-applications on Feb 18.