SINGAPORE (Nov 8): King Wan Corporation reversed out of the red in the 2Q ended September with earnings of $1.5 million, compared to a loss of $0.1 million recorded a year ago.

Revenue grew 10% to $18.7 million during the quarter, from $17.1 million a year ago due to higher revenue recognition as a result of more mechanical and electrical (M&E) engineering activities being carried out.

Gross profit more than doubled to $3.3 million in 2Q18, from $1.5 million a year ago, due to the recognition of profits of certain projects with relatively higher margins.

As at end September, cash and cash equivalents stood at $6.7 million.

Looking ahead, King Wan says its M&E business segment is expected to remain challenging in the next 12 months with continuous pressures on contract values and stiff competition for new projects.

Shares of King Wan closed 0.1 cent higher at 16.2 cents on Wednesday.