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Bukit Sembawang Q2 profit falls 22.7% on slower recognition of project takings

BUKIT Sembawang Estates' net profit fell 22.7 per cent in its second fiscal quarter as it recognised less takings from its development projects.

The property developer posted earnings of S$30.4 million, or 11.73 Singapore cents per share, for the three months ended September. For the fiscal first half, net profit rose 13.6 per cent to S$60.7 million, or 23.46 Singapore cents per share.

Bukit Sembawang's shares closed at S$4.69 on Thursday, lower by 0.6 per cent or 3 Singapore cents, before the results were announced.

Revenue dropped 29 per cent to S$108.8 million during the quarter, and gross profit decreased by 31.1 per cent to S$33.5 million, as the company recognised less profit from development projects. The company recognises profits on projects based on percentage of completion. During the quarter, profits were recognised for Skyline Residences and Phases 6 and 7 of Luxus Hills.

The company expects buying sentiment for private residential property to remain "subdued".