SINGAPORE (Feb 26): GSH Corporation, which develops properties and run resorts, has reported a 28% y-o-y growth in earnings to $7.6 million for the year ended Dec 31, 2019.
Revenue, in the same period, was up 53.3% to $153.7 million, as the company recognised progressive sales from its two residential development projects – Eaton Residences in Kuala Lumpur (picture) and Coral Bay in Kota Kinabalu.
For 4QFY2019, the company’s revenue more than doubled to $50.4 million, with contributions from the property businesses.
However, GSH reported a loss of $1.3 million for the quarter as it wrote down goodwill of $13.7 million in an associate company that has since been sold off. In the year-earlier quarter, the company made $532,000. The company plans to pay a dividend of 0.25 cents. It didn’t pay any for the preceding FY2018.
“We expect the progressive sales contributions from our projects in Malaysia to continue to boost our property business in the quarters ahead,” says CEO Gilbert Ee.
“Meanwhile, our hospitality business will be heavily impacted by the travel restrictions and flight suspensions in Sabah as a result of the Covid-19 outbreak. We are monitoring the situation closely and have put in place mitigating measures to manage the situation,” he adds.
Last December, the company announced that a joint venture in China paid RMB 500 million for a plot in Chongqing. The plot, covering 231,313 square metres, can be used to develop a 1,600-unit residential complex and a 200-room hotel.
GSH shares closed at 32 cents on Feb 26, down one cent.
