Low Keng Huat records S$3.14m net loss for H2

MAINBOARD-LISTED builder Low Keng Huat (Singapore) posted a net loss attributable to shareholders of S$3.14 million for the second half of the financial year ended Jan 31, 2021, down from a net profit of S$11.96 million in the year-ago period.

This was despite revenue rising 71 per cent to S$50.49 million, from S$29.46 million in the year-ago period. The increase was mainly from the development segment, with sales at the Uptown @ Farrer development, launched in the third quarter. As at Jan 31, 2021, 48 out of 116 units had been sold at an average price of S$1,873 per square foot.

But cost of sales rose at a faster pace, more than doubling to S$44.3 million. Other income also fell by S$11.2 million, to S$5.2 million in the second half, mainly due to the absence of a S$14.9 million write-back of provision of impairment in the previous year.

Loss per share was 0.43 Singapore cents for the half-year, down from 1.62 Singapore cents in the year-ago period.

A first and final dividend of 2.5 Singapore cents per share has been declared, up from 1.5 Singapore cents the year before.

For the full year, the firm recorded a net profit attributable to shareholders of S$48.7 million, up from S$12.8 million the year before.

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But this was due mainly to a higher profit in its investment segment, with a gain on the sale of its 50 per cent stake in AXA Tower. Excluding this gain, Low Keng Huat would have recorded a net loss of S$1.5 million instead.

Low Keng Huat shares closed flat at 41.5 Singapore cents on Thursday before the results release.