SINGAPORE (Nov 13): Wee Hur announced that its 3Q17 earnings dropped 51% to $4.4 million compared to $8.9 million in 3Q16.
Revenue for the third quarter ended September came in at $51.9 million, 31% higher than $39.6 million recorded a year ago, mainly due to higher revenue contribution from the construction business.
Consequently, cost of work done increased 23% to $41.5 million from $33.6 million last year.
This brought gross profit in 3Q17 to $10.4 million, 75% higher than $5.97 million in the previous year.
However, other income was 76% lower at $0.26 million from $1.07 million a year ago, due to lower government grants received and ancillary fees collected from the dormitory business.
During the quarter, the group recorded other losses of $0.2 million compared to other gains of $5.51 million recorded in the previous year, due to increase in foreign exchange loss as well as lower fair value gain on forward currency contracts entered into with the banks.
Marketing and distribution costs increased 44% to $477,000 compared to $331,000 last year.
The group recorded income tax expense of $1.74 million compared to a gain of $0.86 million a year ago.
As at Sept 30, the group’s construction order book, comprising mainly residential and industrial projects, stood at approximately $304 million.
Looking forward, competition in the construction and property sectors remains stiff. Hence, the group will continue to be prudent in its approach to navigate through this challenging period.
Goh Yeow Lian, executive chairman of Wee Hur says, “We look forward to the earnings contribution from newly launched Parc Botannia in the coming quarters. As for overseas property development and PBSA ventures in Australia, we need to be patient to wait for another year or two to see the harvest.”
Shares in Wee Hur closed 28 cents on Monday.
