SINGAPORE (Feb 16): Chip Eng Seng Corporation posts earnings of $14.9 million in 4Q, an increase of 52.5% from $9.8 million a year ago, on the back of higher revenue.
4Q revenue grew 62.5% to $250.0 million, compared to $153.9 million a year ago.
This was mainly attributed to higher contribution from its property development and construction divisions.
Revenue from property developments close to doubled to $147.6 million in 4Q, from $74.7 million a year ago, mainly due to higher progressive revenue recognised for High Park Residences.
Meanwhile, construction revenue registered a 31.4% increase to $92.5 million in the quarter, from $70.4 million a year ago. This was mainly attributed to Woodlands N1C26 & N1C27 and Tampines N6C1A/1B, which are at their active stages of construction.
Revenue from Chip Eng Seng’s hospitality division also increased 8.8% to $7.0 million in 4Q, on the back of higher occupancy at Park Hotel Alexandra.
Cash and cash equivalents stood at $481.6 million as at Dec 31, 2016.
In an SGX filing on Thursday, Chip Eng Seng says it is encouraged by the results of new Singapore property launches in second half 2016, and will roll out its New Upper Changi Road development, Grandeur Park Residences, toward the end of this month.
However, the group says it is currently reviewing its plan to launch the South Melbourne project in 1H2017 as residential housing demand in Australia has softened.
Meanwhile, Chip Eng Seng says it entered into an option to purchase an industrial property for prefabricated prefinished volumetric production in Dec 2016, which will enhance its modular construction capabilities.
The group says it will remain active in public housing tenders while continuing to vie for non-housing public projects.
Chip Eng Seng has declared a first and final cash dividend of 4.0 cents per ordinary share.
Shares in Chip Eng Seng closed half a cent higher at 71 cents on Thursday.
