First Sponsor Group posts Q2 profit of S$7.62m

Amidst uncertainty in the Chinese property market, Chinese property developer First Sponsor Group has achieved a net profit of S$7.62 million for its second quarter ended June, up from a net loss of S$3.25 million in the year ago period.

The group's bottomline growth was supported by a boost in revenues to S$29.98 million, up from S$6.61 million. First Sponsor's three core businesses - property development, property holding and property financing - accrued higher revenues in the second quarter, with the property development arm experiencing the largest growth.

First Sponsor said that the various easing of property regulations and adjustments to (China's) benchmarked interest rates and the reserve requirement ratio in the past few months have contributed positively to property prices.

CEO Neo Teck Pheng said that its Millennium Waterfront project in Chengdu, and the Star of East River Project in Dongguan, with an anticipated sales launch in the second half of 2016, will be the two key revenue drivers for the group's property development business segment in the next few years.

First Sponsor is also beginning to reap the fruits of its investment in the Netherlands, and will "continue to explore opportunities" in the country to further diversify and boost its recurrent income base, Mr Neo said.

Earnings per share for the quarter stood at 1.29 cents while net asset value per share was 156.7 cents. A dividend of 0.7 cent per share was declared.

The counter closed trading up 0.77 per cent at S$1.305 on Friday.