BT : Sim Lian posts 38% jump in Q3 earnings

Business Times - 12 May 2010

Sim Lian posts 38% jump in Q3 earnings

Revenue from external projects of group's construction division up 83%

By KALPANA RASHIWALA

SIM Lian Group says it expects to achieve a set of profitable operating results for FY 2010 after posting a 38 per cent year-on-year rise in group net profit to $18.4 million for the third quarter ended March 31.

The improved Q3 bottom line was on the back of a 132 per cent year-on-year surge in revenue to $203.2 million. The construction and property group said the topline was boosted by a 164 per cent jump in revenue from property development division, from $57.1 million in Q3 FY 2009 to $151 million in Q3 FY 2010.

This was due largely to higher percentage recognition of revenue from Clover By The Park, Parc Lumiere, The Lincoln Residences and Rochelle at Newton residential projects.

Sim Lian said revenue from external projects of its construction division rose 83 per cent from $25.5 million in Q3 FY 2009 to $46.6 million in Q3 FY 2010 mainly due to higher percentage of completion recorded. 'The construction division remains selective in all tenders to ensure jobs are secured with reasonable prices and margins,' Sim Lian said in its results statement.

'As a whole, the development projects of the group are expected to contribute positively to the group's performance in FY 2010,' the company said.

For the nine months ended March 31, Sim Lian's group net profit jumped 69 per cent year on year to $76.6 million. Over the same period, revenue rose 28 per cent to $564.1 million.

In March, the group was awarded a 99-year-leasehold residential land parcel at Tampines Ave 1/10 facing Bedok Reservoir. Sim Lian plans to develop a condo with nearly 700 units on this plot ranging from two-bedroom apartments to penthouses with five bedrooms and launch the project sometime in October-December this year.

The group also plans to release this calendar year a landed housing project in Senai, Johor, comprising 120 terrace houses.

Sim Lian's earnings per share (EPS) rose to 3.24 cents for the quarter just ended, from 2.34 cents in the same quarter last year. Nine-month EPS rose from 7.98 cents to 13.49 cents.

Net asset value per share stood at 50.15 cents at end-March 2010, up from 38.07 cents as at end-June 2009.

The counter was last traded at 52 cents.

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