Third-quarter net profit at Sim Lian Group rises 45% to $32.9 million

Developer Sim Lian Group has chalked up a 45 per cent rise in third quarter net profit to $32.9 million on the back of a 37 per cent increase in revenue to $195.7 million.

Revenue from property development shot up by 76.8 per cent to $158 million, mainly due to higher contribution from several development projects.

Its construction division saw a 32.6 per cent drop in revenue to $30.7 million. There were fewer projects in the quarter under review compared to the same period last year.

The group incurred contract costs of $148.4 million, 40 per cent higher. This is in tandem with the increase in revenue, as well as due to higher labour and raw materials costs.

Employee benefits expense rose from $2.3 million to $3 million, mainly due to increase in headcounts and related costs.

Earnings per share grew to 3.3 cents from 2.5 cents previously while net asset value per share swelled to 80.5 cents from 76.1 cents as of June 30.

Sim Lian said its Hillion Residences condominium at Jelebu Road has sold 217 units out of 250 that were released for sale.

However, this project is not expected to contribute significantly to group results this financial year.

Said Sim Lian: "The group will continue to be selective in replenishing our landbank. We will continue to keep a watchful eye on macro conditions as well as continue to explore opportunities to acquire investment properties for recurring income."