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UIC Q2 net profit soars 268% to S$409.3m on fair-value gains

PROPERTY group United Industrial Corp (UIC) on Friday posted a net profit of S$409.3 million in the second quarter, 268 per cent higher than the S$111.1 million it made in the same period a year earlier.

The bottomline was boosted by a S$135 million fair-value gain on investment properties. The valuation gains in the second quarter last year amounted to only S$46 million.

UIC also booked a S$210.3 million one-time gain for derecognising the holding company of Marina Mandarin Hotel as an associated company, after raising its ownership from 26.45 per cent to 57.82 per cent in April.

Profit before fair value and other gains was S$55.1 million, a decrease of 10 per cent, due mainly to lower contribution from The Clement Canopy residential project which was fully sold in April.

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Revenue in the three months ended June 30 was S$218.7 million, up 20 per cent from the same period a year earlier.

Property trading revenue rose 27 per cent to S$51.1 million on higher sales recognition from the Pollen & Bleu residential project. Hotel revenue was also lifted by the consolidation of revenue from the Marina Mandarin Hotel.

Earnings per share (EPS) excluding fair-value gains was 18.5 Singapore cents, up from 4.3 Singapore cents in the second quarter last year. After accounting for fair-value gains, EPS was 28.6 Singapore cents, up from 7.8 Singapore cents.

Net asset value per share was S$5.00 as at end-June, from S$4.74 as at end-December 2018.

UIC shares rose two Singapore cents or 0.68 per cent to close at S$2.95 on Friday before results were released.

Separately, the grandson of UIC chairman Wee Cho Yaw will be appointed chief operating officer of UIC with effect from Jan 1, 2020.

Jonathan Eu Zai Jie, 38, will oversee commercial operations with a key focus on developing the group's business growth and expansion strategy, UIC said.

Mr Eu is also the general manager of investment and asset management at United Overseas Land, the Wee family's flagship property firm.