SINGAPORE (Nov 10): Lum Chang reported 1Q earnings more than doubled to $2.7 million from $0.9 million a year ago on lower cost of sales, higher other income and lower other losses.
Revenue fell 44% to $57.3 million due to lower revenues from substantially completed construction projects amounting to $52 million and from an ongoing construction project amounting to $6.0 million during the quarter under review compared to a year ago.
However, the lower revenue was partially offset by revenue recognition of $13.8 million for another construction project. No revenue was recognised for this project last year as construction progress had not yet reached the stage where revenue recognition could start.
Cost of sales fell by 50% to $46.2 million. This resulted in a 23% rise in gross profit to $11 million.
Other income rose 77% to $1.1 million while other losses fell 68% to $0.3 million.
Lum Chang says the local construction sector continues to be weighed down by weak private sector activities and could remain weak for the rest of 2017. The group’s outstanding value of construction projects in progress not yet reported as revenue is $542.6 million.
In Malaysia, the group is working on planning submission for its mixed development in Petaling Jaya, and continues to market for landed residential developments in Twin Palms Sungai Long.
Shares in Lum Chang closed 1 cent higher at 39 cents on Friday.
