SINGAPORE (April 2): Low Keng Huat has announced 4Q18 earnings of $3.5 million, declining 34% y-o-y from $5.3 million on the back of lower revenue.
This brings the property developer’s FY18 earnings of $15.4 million, down 13% from $17.8 million a year ago due to lower overall profit from its development and investment segments.
Over the latest 4Q, revenue fell 69% to $8.9 million from $28.6 million a year ago in the absence of contributions from the development segment, whereas none was registered compared to development revenue of $19.2 million in 4Q17 post the sales of Kismis, which achieved TOP in May 2018 and was sold two months after.
Revenue from the investment and hotel & F&B segments, too, registered a 2% and 8% decline, respectively, to $4.2 million and $4.7 million from $4.3 million and $5.1 million a year ago.
The decrease in investment revenue was mainly due to a lower write-back of accrual of construction project costs, and the absence of gain on disposals of quoted investments.
Meanwhile, the lower revenue from the group’s hotel and F&B segment was mainly attributed to lower room rates and lower occupancy in Duxton Hotel Perth, as well as the closure of F&B outlets.
As at end-Jan 2019, cash and cash equivalents stood at $121.6 million, down from $139.4 million a year ago due to cash used to acquire 67 Cairnhill Road, dividend payments to shareholders as well as shareholder loan repayment.
Looking ahead, the group notes a more subdued residential property market since the recent tightening of property cooling measures, and says it will continue to be selective in land bidding and investment projects while striving to maintain rental rates for renewals.
Shares in Low Keng Huat closed flat at 54 cents on Monday.
