SINGAPORE (May 4): Chip Eng Seng, the property developer and construction company, reported a more than seven-fold surge in 1Q earnings to $6.1 million from $0.8 million on higher sales across all segments.
Revenue for the three months ended March rose 62.6% to $181.9 million.
Sales from property developments more than doubled to $90.1 million due to higher progressive revenue recognised for High Park Residences and sales of Fulcrum.
Sales from construction rose 33.3% to $81.5 million while sales from hospitality rose 12.2% to $7.3 million due largely to higher percentage of completion achieved for projects in Woodlands and Tampines.
Sales from the hospitality division increased 12.2% to $7.3 million due to higher occupancy achieved for Park Hotel Alexandra.
Chip Eng Seng launched Grandeur Park Residences in March. To date, the number of units sold has reached 71.9%.
However, rising from the good sales results, significant marketing expenses including commission will be expensed off in 2Q17. Management says this will weigh on the 2Q17 results as no progressive revenue will be recognised.
Meanwhile, the group’s construction order book had slipped further to $457.2 million as of end March, down from $537.4 million of the preceding quarter.
However, the group has just secured a HDB project in May 2017 with contract sum of $110.8 million and remains in contention for several HDB and other projects it has tendered.
Shares of Chip Eng Seng closed at 75 cents.
