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Property expenses hit Chuan Hup's Q3 earnings

SUBSTANTIAL property expenses dented the bottomline for electronics maker and property developer Chuan Hup Holdings in its third quarter despite higher revenue.

Net profit for the three months ended March 31 fell 57.5 per cent to US$8.53 million from the previous year, even though revenue expanded 34.7 per cent to US$66.87 million over the same period.

An increase in property revenue in Q3 more than offset a 17.9 per cent decline in electronics manufacturing services revenue, the group said in its statement.

It added that the higher property expenses in the quarter were related to apartment units "sold and settled during the current quarter".

Chuan Hup cautioned that "the economic outlook for the next 12 months remains weak", adding: "Although expectations of further US interest rate hikes have scaled back, the currency and equity markets may continue to be volatile."

Earnings per share came in at 0.92 US cent for the quarter, down from 2.15 US cents in the year-ago period. Net asset value per share was 30.02 US cents as at March 31 this year, a drop from 32.61 US cents as at June 30 last year.

Chuan Hup shares rose half a cent to close at S$0.285 on Thursday.