SINGAPORE (May 7): Property group Chip Eng Seng reported 1Q earnings of $11.3 million or 1.8 cents, 84.6% higher compared to $6.12 million, or 0.99 cents, a year ago due to higher sales.
Revenue rose 34.2% y-o-y to $267.3 million as property development segment grew 48.9%, driven by the Grandeur Park Residences and Park Colonial private-home projects here.
Hotel contributions also rose by 19.7%, lifted by contributions from the Mercure and Ibis Styles Grosvenor Hotel in Adelaide, which the group acquired in March last year.
Growth in these segments offset the 10.3% revenue fall in construction, where the order book fell to $388.8 million, from $425.5 million the previous quarter, as no new contracts were won.
In its outlook, Chip Eng Seng said that it will exercise caution when bidding for new projects in Australia and Singapore.
And with competition for HDB contracts expected to stay keen, the group said it would tender for other non-housing and civil engineering if the opportunity allows and also plans to grow its education operations both in Singapore and abroad.
Chip Eng Seng shares closed 1 cent lower at 77 cents on Monday before the results were released.
