Chip Eng Seng's Q2 net profit falls 8% to $6.8 million

Construction group Chip Eng Seng Corp's second quarter net earnings tumbled by 8.2 per cent to $6.8 million.

This was despite revenue rising by 32 per cent to $109.1 million for the three months to June 30.

Higher revenue was contributed by both the construction and property development projects.

Revenue contribution mainly came from on-going projects which are in their active stage of construction.

Construction projects awarded in 2012 also significantly contributed to the increase in revenue for the current quarter.

Gross profit increased by 2.3 per cent to $16.2 million, mainly due to progressive recognition of My Manhattan residential project.

Earnings per share slipped to 1.05 cents from 1.12 cents previously while net asset value per share fell to 67.73 cents compared to 71.03 cents as at Dec 31.

As at June 30, the Group's fully-owned residential developments, My Manhattan (99 per cent sold) and Belvia (97 per cent sold) as well as its 40 per cent-owned executive condominium developments Privé (fully sold) and Belysa (fully sold) are at advanced stage of construction.

Privé obtained Temporary Occupation Permit (TOP) in July 2013. The Group will account for its share of profit in the third quarter.

Chip Eng Seng expects My Manhattan to obtain TOP by end of the year while Belysa is anticipated to be substantially completed in the coming months. It is scheduled for completion in 2014.

The group is planning to launch its residential cum commercial integrated development at Yishun Avenue 9 in the coming months.

The development will feature a 14-storey building comprising 2 blocks of 11-storey condominium and 6 strata cluster housing units atop a three-storey retail cum carpark podium.