SINGAPORE (Feb 13): Construction and property development firm Lum Chang Holdings posted a 34% rise in earnings to $4.0 million for 2QFY2020 ended December 2019, from $3.0 million a year ago.
Earnings per share rose to 1.06 cents in 2QFY2020, from 0.79 cent in 2QFY2019.
2QFY2020 revenue more than doubled to $92.9 million, from $43.6 million a year ago, on the back of the increase in work performed for several construction projects.
Finance expense for 2QFY2020 climbed 50% to $2.1 million, mainly due to interest paid on bank borrowings for the group's residential developments in Singapore and Malaysia.
Share of profits of joint ventures fell 27% to $3.1 million, mainly due to lower fair value gain on an investment property owned by a joint venture company in Singapore.
Net asset value per share rose to 68.55 cents as at Dec 31, 2019, from 67.58 cents as at June 30, 2019.
As at end December, cash and cash equivalents stood at $126.9 million.
The board has declared an interim dividend of 0.30 cent for the period, the same as a year ago.
As at Dec 31, 2019, the group’s outstanding value of construction projects in progress amounts to around $1.15 billion.
The group’s Tekka Place redevelopment received its TOP in the fourth quarter of 2019, while construction for luxury landed development One Tree Hill Collection is on track to complete in the second half of 2020.
Lum Chang says building works for Kelaty House, the group’s serviced residences in London, is also progressing well and is expected to complete in 2021.
Meanwhile, it is continuing with its marketing activities for its landed residential development in Twin Palms Sungai Long, Malaysia.
Shares in Lum Chang closed flat at 36 cents on Thursday, before the results announcement.
