Gallant Venture returns to the black in H1, posts S$803,000 profit
Wong Pei Ting
GALLANT Venture, a developer, master planner and manager for industrial parks and resorts in Batam and Bintan, reversed into the black in the fiscal first half from the year before, as revenue grew 16.1 per cent, the company announced on Friday (Aug 11).
Net profit for the six months ended Jun 30, 2023 stood at S$803,000, reversing from a net loss of S$16.8 million posted the same period a year ago.
The results translate to basic earnings per share of 0.015 Singapore cent, against loss per share of 0.308 Singapore cent.
The 16.1 per cent growth in revenue lifted the topline to S$87.9 million. The group attributed this to higher revenue from industrial leases and related income driven by increased occupancy from the industrial parks segment, as well as strong recovery in the resort segment as travel and tourism resumed.
In giving its outlook, the group said demand for the spaces in its industrial parks remains high. This segment is thus expected to continue to outperform with sustained growth in industrial lettable spaces and rental yield, it pointed out.
With the construction of new factories in Batamindo Industrial Park in Batam, Indonesia, 70,800 sq m and 85,000 sq m of new industrial space are expected to come onstream by the end of 2023 and 2024, respectively, it noted.
Meanwhile, it said that even as tourist arrivals and tourist activities in its Bintan resort had rebounded strongly, the return of Chinese tourists has been lower than expected. Nevertheless, the group said it is optimistic that Chinese airlines will increase their international flights to the island, given the pent-up demand from this group of travellers.
The board did not propose any interim dividend for the first half as the company is “committing its cash resources to further develop and expand its industrial parks and utilities businesses”, it pointed out.
Shares of Gallant Venture closed flat at S$0.132 on Friday.
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