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Chip Eng Seng Q3 net profit up 8%

CONSTRUCTION and property group Chip Eng Seng Corporation's third-quarter net profit rose about 8 per cent year-on-year to S$14.28 million, the company announced on Friday.

Revenue for the quarter jumped some 50 per cent to S$320.1 million, thanks to its property developments and hospitality businesses. In particular, revenue from property developments shot up over 76 per cent to S$257.31 million. This was partly offset by lower revenue from the construction business.

Earnings per share for the quarter under review clocked 2.29 Singapore cents, up from a restated 2.12 cents in the third quarter of the year prior.

In an update on its property developments, it said that more units of Park Colonial had been sold since 2Q2018, with the total sales-to-date now at 65.1 per cent. Its other project, Grandeur Park Residences is 96.7 per cent sold while preparation for the launch of the Changi Garden project for sale is on track for 1H2019.

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In Australia, tightened credit conditions are inciting a "soft landing" in the Melbourne real estate market, it said. The group has sold 4.1 per cent of the first phase of Fifteen85 - a South Melbourne project - which was launched in June. Apart from Fifteen85, Chip Eng Seng has 20 apartments available for sale from the Williamson Estate project.

Where its construction business is concerned, the group's total construction order book declined further from S$479.9 million a quarter ago to S$440.7 million at the end of 3Q2018 as more works were completed and billed.

The counter closed at 69.5 Singapore cents on Friday, up 1.5 cents.