SINGAPORE (Sept 15): Low Keng Huat, the construction company and developer, reported 2Q17 earnings fell 99% to $474,000 from $43.1 million a year ago due to an extraordinary gain of $53.8 million from the sale of Duxton Hotel Saigon in 2Q16.
Revenue for the three months ended July rose 59% to $13.6 million. Development revenue of $3.6 million was recognised in 2Q17 while none was recognised a year ago. Revenue from investments decreased by $0.2 million to $4.3 million while revenue for hotel and F&B business increased by $1.8 million to $5.7 million.
Cost of sales widened 74% to $11.6 million. This resulted in an 8% rise in gross profit to $2 million.
In its outlook, Low Keng Huat says the property market appears to be recovering from the recent en bloc sales activity and the recent land sales by the government which have attracted foreign developers and high bidding prices. The group will continue to be selective in land bidding and investment projects.
Shares in Low Keng Huat closed at 66 cents on Friday.
