Revenue recognition from Concourse Skyline project lifts profit at Hong Fok by 264%

Developer Hong Fok Corporation has posted a 264 per cent jump in second quarter net profit to $13.5 million.

Revenue for the three months to June 30 was up 135 per cent at $71.1 million.

This was due mainly to the recognition of more sales revenue from the residential units of Concourse Skyline based on the percentage of completion method.

The increase in the group's other income was from compensation income relating to the leases of its investment properties and interest income but were partially offset by loss on disposal of fixed assets and other assets in the current period.

Earnings per share grew to 1.71 cents from 0.47 cent previously while net asset value per share firmed to $1.55 compared to $1.52 as at Dec 31.

On its outlook, Hong Fok said it expects the office rental revenue to remain stable.

It will continue to recognise revenue from the sold residential units of Concourse Skyline.