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Second Chance Properties posts S$2.12m net profit in Q1
MAINBOARD-LISTED Second Chance Properties on Thursday posted a net profit of S$2.12 million in the first quarter, almost 10 times the profit of S$0.22 million it earned in the same period a year earlier.
The difference was due mainly to a fair-value loss on financial assets of S$2.09 million in the first quarter last year compared to a fair-value gain of S$0.25 million this year.
Revenue in the three months ended Nov 30 was S$6.35 million, up 1.89 per cent from the same period a year earlier.
Revenue from the gold business rose 7.14 per cent to S$3.3 million, though rental revenue from properties fell 4.91 per cent to S$1.55 million, owing to the sale of an investment property as well as lower rentals received on some lease renewals.
Properties continued to contribute to the bulk of profit or S$1.3 million, while the gold business contributed S$0.75 million, higher by S$0.41 million from the S$0.34 million it generated in the same period a year earlier.
Earnings per share was 0.28 Singapore cent, up from 0.03 cent in the same period a year earlier.
Net asset value per share was 35.18 Singapore cents as at Nov 30, up from 34.72 cents as at Aug 31.
The group said: "If there is no further escalation of the US-China trade war, the Singapore economy is expected to show modest economic growth in 2020.
"The apparel business in both Singapore and Malaysia is facing great challenges mainly from stiff competition and trend of online shopping which is expected to continue. The gold business is expected to remain profitable. The loss of rental income from properties sold coupled with negative rental reversions will result in lower rental income for the group. Market forces will determine the performance of the financial instruments sector."
Second Chance Properties shares closed unchanged at S$0.235 on Thursday before the results were released.