Mainboard-listed Low Keng Huat has reported earnings of $5.8 million for 1HFY2025 ended July 31, reversing from its $1.5 million loss in 1HFY2024.
Revenue for the six-month period rose by 34% y-o-y to $257.9 million due to higher revenues from the company’s property development and hotel businesses and offset by lower contributions from its investment business.
Revenue from the company’s property development segment increased to $225.4 million from $156.6 million due to a higher percentage of completion for the Klimt Cairnhill project. In 1HFY2025, the project was 25% completed compared to 8% in 1HFY2024. The company also sold more units with 121 sold as of July 31 from 66 units in July 31, 2023.
Revenue from Low Keng Huat’s hotel segment rose to $23 million in 1HFY2025 from $22.5 million due mainly to higher revenue at Duxton Hotel Perth. The hotel saw improved occupancy and better average daily rates (ADR). Lyf@Farrer also saw an increase in revenue due to higher ADRs. Meanwhile Citadines Balestier saw a decline in revenue from lower ADRs. Occupancy rates at the company’s two serviced apartments remained stable y-o-y.
Revenue from investments fell to $9.5 million from $13.6 million due to the absence of construction revenue after the Dalvey Haus project was completed. Dalvey Haus contributed $4.4 million in revenue in 1HFY2024.
Cost of sales increased by 37% y-o-y to $222.4 million due mainly to higher costs recognised for the Klimt Cairnhill project.
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Gross profit was up by 16% y-o-y to $35.5 million mainly from the higher contributions from the property development and investment segments due to the better performance from the Klimt Cairnhill project and Paya Lebar Square. Gross profit from the company’s hotel segment fell due to weaker contributions from Citadines Balestier and F&B outlet Carnivore Brazilian Churrascaria.
Gross profit margin fell to 14%, down two percentage points y-o-y due to a higher percentage of gross profit contribution from the property development segment, which had a lower margin compared to the other two segments.
As at July 31, cash and cash equivalents stood at $71.6 million.
Shares in Low Keng Huat closed 1 cent lower or 3.03% down at 32 cents on Sept 13.
