KEPPEL Corp unit Evergro Properties yesterday said that its net profit for the second quarter fell 89.1 per cent to $212,000 from the previous corresponding quarter’s $1.9 million, which included a net divestment gain of $2.5 million.
The divestment gain last year came from its disposal of a 50 per cent stake in a Jiangyin company.
For the three months ended June 30, 2008, Evergro posted an operating profit of $187,000, reversing an operating loss of $1.0 million for 2Q07.
This came on the back of better revenue. Turnover in 2Q08 grew 83.5 per cent to $18.6 million, from $10.1 million a year ago. Turnover comprised mainly progressive revenue recognition from the company’s property development project in Changzhou Fushi.
Earnings per share fell to 0.04 cent, from 0.38 cent in 2Q07. No dividend was declared for 2Q08.
For the first six months of 2008, Evergro’s net profit fell 69.0 per cent to $313,000. Turnover for the first half rose 160.4 per cent to $28.1 million.
Evergro, which operates in China, said that the volatility of the stock markets in China has affected investors’ confidence in real estate. As a result, transaction volumes fell across the board in June.
‘We do not expect this to change in 3Q08 but we believe that the fundamentals of housing demand as a result of urbanisation will not change and the property market will improve gradually,’ the company said.
Evergro’s current projects in the three cities it operates in are proceeding as planned, it said. The developer is particularly optimistic about its developments in Tianjin. The company hopes that Tianjin’s profile will be given a boost with the launch of the Sino-Singapore Eco-city project in the city in September this year.
Evergro is currently in the process of offering a rights issue. The proceeds of the issue will be used mainly to acquire more land for development in China and to improve its golf course in Tianjin, it said.
Evergro’s shares closed unchanged at 18.5 cents yesterday. The stock has shed some 41.3 per cent since the start of the year.
No comments:
Post a Comment