SingHaiyi's Q3 net profit rises 12.8% as revenue more than triples

SINGHAIYI Group on Wednesday posted a 12.8 per cent increase in net profit to S$1.4 million for its third quarter ended Dec 31, 2017, as revenue more than tripled to S$41.7 million.

The property developer said the surge in turnover arose mainly from the revenue recognised for its completed executive condominium (EC) project, The Vales, as well as sales of completed units from Vietnam Town in the US.

Property development income rose to S$39.2 million, from S$8.9 million a year ago. Cost of sales surged to S$35.8 million, from just S$5.9 million a year ago, but the group said this was "in line with the increase in property development income".

In the quarter, the group had secured the bulk sale of Phase II of Vietnam Town, a 141-unit commercial condominium project in San Jose, for US$95.3 million.

It expects to begin delivery of the first block in Q2 2018. The bulk sale is slated for completion by September 2018, and is expected to have a positive impact on the group's net tangible assets and earnings per share for FY19, it said.

Gross profit margin decreased by 37.1 percentage point year-on-year, which the company attributed mainly to the change in geographical revenue mix as more revenue from property development with lower profit margins was recognised in the latest reporting quarter.