Contractor Lian Beng reported on Monday that its fiscal second quarter net profit rose 21.3 percent on-year to S$7.73 million despite a decline in revenue amid lower expenses.
Revenue for the quarter ended 30 November fell 15.3 percent on-year to S$79.94 million, mainly due to a decrease in revenue from the property development segment, offset by an increase in revenue generated from the construction and investment holding segments, the company said in a filing to SGX after the market close on Monday.
Distribution expenses dropped 81.3 percent on-year to S$470,000, from S$2.52 million in the year-ago quarter, mainly on a decrease in sales commission for the industrial property development, T-Space @ Tampines and due to year-ago marketing and leasing agent’s fee for the investment property at 50 Franklin Street in Melbourne, Australia, Lian Beng said.
Cost of sales fell 21 percent on-year to S$63.5 million, it said.
Lian Beng declared a 1 Singapore cent dividend, unchanged from the year-ago level.
For the fiscal first half, net profit fell 17.3 percent on-year to S$14.70 million, while revenue slipped 1.8 percent on-year to S$165.95 million, Lian Beng said.
In its outlook, the company said it expected the residential property market would remain challenging as the Singapore government implemented fresh cooling measures last year. It added that it would “exercise caution” when seeking to replenish its land bank, even as it continues to weigh joint ventures to complement the property development business.
Lian Beng said its order book was at S$1.2 billion as of 30 November, which is expected to provide steady activity through fiscal 2022.