Boustead Projects' Q2 profit down on higher expenses, share loss

REAL estate solutions company Boustead Projects has posted a net profit of S$8 million for its fiscal second quarter, down 16 per cent from S$9.5 million in the same period a year earlier.

This was mainly due to higher overhead expenses and share loss of an associated company and joint ventures. The dip was slightly offset by a higher gross profit.

Revenue in the three months ended Sept 30 rose 21 per cent to S$60.6 million due to higher design-and-build revenue, partially offset by lower leasing revenue.

Earnings per share came in at 2.6 Singapore cents, compared to 3 cents a year ago. Net asset value per share was S$0.865 as of Sept 30, from S$0.79 as of Dec 31 last year.

Net profit for the six months ended Sept 30 was 18 per cent higher year-on-year at S$18.1 million, mainly boosted by a non-recurring gain from the sale of 25 Changi North Rise.

Revenue in the first half was 14 per cent higher year-on-year at S$109.3 million, also due to higher design-and-build revenue, partially offset by lower leasing revenue.

First-half earnings per share was 5.8 Singapore cents, up from 4.8 cents in the same period a year earlier.

The current order book backlog stands at S$212 million. This refers to unrecognised project revenue remaining at the end of Q2 plus the total value of new orders secured since then.

Thomas Chu, managing director of Boustead Projects said: "Our order book was boosted by a contract secured for a business park building in one-north. We also achieved significant progress in growing our development business and leasehold portfolio."

He added that the company is cautiously optimistic of capitalising on a steady pipeline of opportunities both in Singapore and overseas for the rest of its 2019 fiscal year.

The company will continue to invest in smart and eco-sustainable building capabilities, and secure strategic partnerships and acquisition targets that can extend its capabilities and support its market expansion.

Boustead shares closed two cents down on Monday at S$0.82 before the results were announced after close of trading.