Revenue from the group’s property developments division increased more than doubled to $145.8 million from $67.9 million last year.
This was due to revenue derived from the progressive recognition of High Park Residences. A pickup in sales at Fulcrum along Fort Road and the commencement of revenue recognition from Grandeur Park Residences also helped contribute to the stronger topline.
Additionally, the progressive handover of townhouses of Williamsons Estate in Doncaster, Melbourne, also boded positively.
Revenue from the group’s hospitality division also grew 7.1% to $10.4 million from 47.1 million in 3Q16, due to revenue contribution from the group’s latest hospitality offering, Grand Park Kodhipparu, Maldives, which commenced business in June 2017 and improved occupancy from Park Hotel Alexandra.
However, revenue from the construction division dropped 31.9% to $50.4 million compared to $74.1 million a year ago, largely due to lower revenue recognised from Tampines N6C1A/1B.
Property Investments and others division fell 7.7% to $2.5 million from $2.7 million, due to the divestment of the group’s office building at 420 St Kilda Road in Melbourne, Australia, during the quarter.
In line with the increase in revenue, cost of sales increased 39.5% to $174.1 million from $151.8 million the previous year.
This brought gross profit to $35.1 million, 30.2% up from $27.0 million a year ago, while profit before tax came in higher by 90.1% primarily due to a one-off disposal gain from the divestment of 420 St Kilda Road in Melbourne, Australia, in September.
In addition, other income for 3Q17 tripled to $13.8 million from $4.59 million in 3Q16.
As at Sept 30, the group’s cash and cash equivalents stood at $508.3 million.
Shares in Chip Eng Seng closed 2 cents lower at 96 cents on Friday.
