SingHaiyi Q3 net profit rises to S$4m

PROPERTY developer SingHaiyi posted a rise in net profit from S$1.4 million to S$4 million for the third quarter ended Dec 31, 2018, despite a 62 per cent fall in revenue.

The increase came on the back of wider gross profit margins and higher other income. Gross profit was up 24.5 per cent to S$7.3 million due mainly to the change in geographical revenue mix, as more revenue from property development in the US with a higher profit margin was recognised.

Other income increased from S$0.4 million to S$2.9 million due to the forfeiture of non-refundable deposits of S$1.8 million, arising from the termination of the bulk sale agreement for the Vietnam Town Phase 2 units and the increase in investment income of S$1.1 million. The investment income pertains to dividend income from the group's investment in quoted stapled securities issued by Cromwell Property Group, a global real estate investment manager listed on the Australia Stock Exchange.

Revenue slid 62 per cent to S$15.8 million due to the decrease in revenue recognised for the group's completed executive condominium project The Vales, and its completed private condominium City Suites, of about S$28.7 million and S$9 million respectively. This was offset by the sales of SingHaiyi's Vietnam Town Phase 2 units of S$11.9 million.

Earnings per share increased to 0.094 Singapore cent from 0.048 cent.

SingHaiyi closed flat at S$0.094 before results were released.