Lum Chang posts 34.3% rise in Q2 net profit of S$4.04m

MAINBOARD-LISTED builder Lum Chang Holdings' second-quarter earnings were lifted by more construction work, as well as bank interest income and currency gains against an earlier loss.

Net profit rose 34.3 per cent year-on-year to S$4.04 million for the three months to Dec 31, 2019, as revenue more than doubled from S$43.6 million to S$92.9 million, according to results on Thursday.

The higher turnover came on the back of more work for certain construction projects, which made up for the lower revenues at substantially completed projects.

Earnings per share for the quarter stood at 1.06 Singapore cents, up from 0.79 cent, while net asset value was 68.55 Singapore cents a share against 67.58 cents as at June 30, 2019.

For the half-year, net profit jumped by 77.4 per cent to S$7.04 million, as revenue surged from S$90.1 million to S$187.8 million.

Lum Chang's outstanding value for in-progress construction projects was S$1.15 billion as at Dec 31, 2019, the group disclosed in its outlook statement.

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Meanwhile, in property development, luxury landed project One Tree Hill Collection is expected to be finished by end-2020, with three of 14 units sold and an option granted for one more unit.

The Kelaty House serviced residence in London is expected to be completed in 2021, while marketing activities for Malaysian landed home project Twin Palms Sungai Long are continuing.

Still, Lum Chang warned that it is uncertain what impact - if any - the global Covid-19 outbreak will have on its full-year financial results.

The board has recommended an interim dividend of 0.3 Singapore cent a share, unchanged from the same period the year before, to be paid on March 12. The books close on Feb 28.

Lum Chang shares closed flat at S$0.36 on Thursday before the results were released.