Low Keng Huat sinks deeper into red in H2 with S$4.3m loss

MAINBOARD-LISTED builder Low Keng Huat (Singapore) sank deeper into the red in the fiscal second half from a year ago, its latest financials released on Thursday (March 31) showed.

Net loss for the 6 months ended Jan 31, 2022 stood at S$4.3 million, compared with a net loss of S$3.1 million posted the same period a year ago.

The results translate to loss per share of 0.58 Singapore cents, against loss per share of 0.43 Singapore cents in the preceding half.

Its net profit for the full financial year fell to S$20.8 million from S$48.7 million in the year-ago period.

The company attributed the fall in profit in the full year to lower profit from its investment segment. This was because the gains from the sale of an equity stake in Perennial Shenton Holding of S$50 million in previous year far exceeded gains of S$19.7 million from the disposal of Westgate Tower and Westgate Commercial and the S$8.6 million from the disposal of office units in Paya Lebar Square in the current year, it noted.

However, its hotel and development segments performed better, it noted.

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It said the hotel segment did better because the group was not subjected to an impairment loss of S$3.4 million for the Citadines Balestier property.

Losses under its development segment narrowed, from S$1.5 million in the previous year to S$100,000 in the current year as profit from Uptown @ Farrer offset higher show flat costs at Klimt Cairnhill, it added.

The company reported a 44 per cent rise in H2 revenue to S$72.7 million. Full-year revenue rose 120.4 per cent to S$161.6 million.

The rise in full-year revenue was mainly due to a rise in development revenue from sales at Uptown @ Farrer, which obtained its temporary occupation permit on Sep 7, 2021 and sold 112 out of 116 units as at Jan 31, 2022.

The board has proposed a first and final dividend of 2 Singapore cents per ordinary share. It will be paid on Jun 24 if shareholders approve of it at the company's upcoming annual general meeting on May 31.

Shares of Low Keng Huat closed down 1 per cent or S$0.005 at S$0.48 on Thursday, before the results were released.