Chip Eng Seng Corp was off to a good start as net profit surged 84 percent to $11.25 million in the first quarter of 2019 from $6.12 million over the same period last year.
Gross revenue jumped 34.2 percent to $267.3 million, mainly due to robust contribution from its property developments and hospitality divisions.
The company’s property developments division posted a 48.9 percent hike in revenue to $204.3 million in Q1 2019, on the back of higher percentage of completion of Park Colonial and Grandeur Park Residences.
Its hospitality division registered a 19.7 percent increase in revenue to $21.7 million due to full quarter contribution from Mercure & Ibis Styles Grosvenor Hotel in Adelaide, South Australia.
Revenue from its construction division, on the other hand, dropped 10.3 percent to $37.7 million, while revenue from its property investment division remained stable from the previous quarter at $1.8 million.
Looking ahead, the group intends to exercise caution in bidding for new land parcels in Singapore, considering the slowdown in property sales and increasing supply of private homes.
URA data showed that private home prices slipped 0.7 percent in Q1 2019.
“As for total supply, there were 53,284 uncompleted private residential units (excluding ECs) in the pipeline with planning approvals as at the end of Q1 2019, as compared with 51,498 units in Q4 2018. Of these, 36,839 units remained unsold as at the end of Q1 2019, up from 34,824 units in Q4 2018,” it noted.
Chip Eng Seng also revealed plans to launch its Changi Garden project, called Parc Komo, for sale in the second quarter of 2019.