THE bustling resale flat market lifted the net profit of tile specialist Hafary Holdings to S$10.4 million for H1 ended June, more than double the S$5.1 million net profit a year ago.

The mainboard-listed company declared an interim dividend of 0.75 Singapore cent per share, unchanged from the year-ago period. The payout date will be announced later.

Hafary’s H1 revenue came in 21.9 per cent higher at S$71.3 million. In its general segment – where customers include homeowners, architecture, interior design and renovation firms – revenue rose 22.3 per cent to S$46.6 million.

The company saw “robust demand from homebuyers who prefer the certainty of getting their flats in the resale market and avoid the construction delays for Build-To-Order flats, caused by manpower shortages and supply chain disruption”, Hafary said in its earnings statement.

In the project segment – where customers include architecture firms, property developers and construction companies – revenue rose 21.1 per cent to S$24.7 million. This was due to the pickup in construction activity, supported by a greater inflow of migrant workers.

Looking ahead, Hafary noted that the Building and Construction Authority (BCA) projects the total construction demand in 2022 to be between S$27 billion and S$32 billion, with the public sector expected to contribute about 60 per cent.

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In the private sector, commercial building demand is expected to increase, “as hotels and attractions undergo refurbishment to prepare for inbound tourism revival, and older commercial premises are earmarked for redevelopment to enhance their asset values”, Hafary said.

That said, it noted that the construction sector is facing challenges such as supply chain disruptions, labour shortages, higher material and manpower costs and pressure to make up for lost time in the completion of projects.

Hafary was trading at S$0.215, up 7.5 per cent or S$0.015, as at 9.15 am.