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Straits Trading posts 25.5% drop in Q2 net profit to S$25.3m
MAINBOARD-LISTED Straits Trading Co saw net profit fall 25.5 per cent year-on-year for the second quarter ended June 30 to S$25.3 million, down from S$33.9 million in the year-ago period, it announced on Wednesday after market close.
Revenue fell 9.4 per cent to S$95.5 million. This was due to a fall in tin mining and smelting revenue to S$95.5 million from S$110.2 million in the year-ago period. Property revenue, in contrast, rose 63.2 per cent to S$9.8 million.
The real estate segment continued to be Straits Trading's main profit driver, with profit after tax and non-controlling interests of S$26.2 million that quarter. This was down from S$34.1 million in the year-ago period, which the company attributed to lower fair-value gains from its properties.
Earnings per share for the quarter were 6.2 Singapore cents, compared with 8.3 Singapore cents in the year-ago period. No dividend was declared, the same as in the year-ago period.
Executive chairman Chew Gek Khim said the company is "targeting attractive investment opportunities underpinned by sustainable demand in the Asia-Pacific" and expects to continue benefiting from the growth of ARA Asset Management, in which it has a 20.95 per cent stake.
But she added: "However, with geopolitical uncertainties in play, we will take a disciplined approach in making investments with a deliberate longer-term view. In line with this, we will be focusing on regions with better fundamentals and themes that offer better risk-adjusted returns."
Straits Trading shares closed unchanged at S$2.19 on Wednesday before the results announcement.