SINGAPORE-LISTED builder Low Keng Huat (Singapore) Limited on Thursday posted a net profit of S$43.1 million in the second quarter despite a much lower revenue, lifted by the sale of Duxton Hotel Saigon in May 2016.
In its filing to the bourse operator, it said that its other income rose by S$51.5 million to S$53.9 million in the three months as at end July, from S$2.4 million a year ago.
Revenue in Q2 fell 58 per cent to S$8.6 million, mainly due to the decrease in construction activity as Genting Hotel at Jurong obtained temporary occupation permit (TOP) on March 31, 2015, as well as lower room rates and occupancy in Duxton Perth in the first half of the year. The reclassification to "other income" of the revenue from the sale of Duxton Hotel Saigon was also a factor.
In the first half of 2016, net profit grew to S$46.4 million, up from S$11.8 million a year ago, while revenue was down 48 per cent to S$24.4 million.
If extraordinary income from sale of Duxton Hotel Saigon is excluded, the company would have recorded a net loss of S$3.6 million in the first half of 2016 from a profit S$11.8 million in the previous year.
In its outlook, the company said that the cooling measures introduced by the Singapore government and the release of more land for development continue to slow down the already sluggish property market. It said that it would continue to be selective in land bidding and investments projects.