The Straits Trading Co reports sharp rise in earnings

SINGAPORE - The Straits Trading Co (STC) chalked up a net profit of $6.6 million for the second quarter, up sharply from $1.8 million in the same period last year.

Revenue for the three months to June 30 was up 7.8 per cent at $139.5 million.

For the first half year, net profit surged by 587.2 per cent to $29.2 million on the back of a 1.8 per cent rise in revenue to $280 million.

The group reported better performance across all business segments.

Second quarter earnings per share rose to 1.6 cents from 0.4 cent previously while net asset value per share firmed to $3.24 compared to $3.18 as at Dec 31.

Straits Real Estate (SRE), the group's 89.5 per cent-owned real estate investment vehicle, made its maiden entry into the Japan residential market with the acquisition of three residential properties in Central Osaka.

The acquisition which was completed towards the end of June will complement SRE's existing investments in the Asia Pacific region and is in line with its strategy of tapping into higher returning real estate investment opportunities, said STC.

Malaysia Smelting Corporation, its 54.8 per cent-owned resources arm, has seen some recovery in tin prices, but market conditions remain challenging.

The outlook for global commodity and resources sectors remains uncertain and volatile.

Far East Hospitality Holdings, STC's 30 per cent-owned hospitality arm, continues to grow its businesses by increasing the number of management contracts, acquiring strategic assets, and divesting properties to recycle capital for re-deployment towards higher yielding growth opportunities.