SINGAPORE (Dec 27): Second Chance Properties, the property owner and retailer of gold ornaments and baju kurung, reported a net profit of $2.12 million in 1QFY2019 ended November, versus the net profit of $0.22 million posted in the same period a year ago.

Earnings per share for 1Q came in at 0.28 cent, up from 0.03 cent in the same period a year earlier.

The surge of nearly 10 times was mainly due to a fair value loss on financial assets of $2.09 million recorded in 1QFY2018 compared to a fair value gain of $0.25 million this year.

1Q revenue came in at $6.35 million, down 1.89% from the same period a year earlier.

Although sales from its gold business rose 7.14% to $3.3 million, rental income fell 4.91% to $1.55 million due to the sale of an investment property as well as lower rentals after the renewal of some leases.

Properties continued to contribute to most of the profit at $1.3 million, while the gold business contributed $0.75 million, higher by $0.41 million from the $0.34 million it generated in the same period a year earlier.

As at end November, net asset value per share stood at 35.18 cents, up from 34.72 cents as at Aug 31.

"The apparel business in both Singapore and Malaysia is facing great challenges mainly from stiff competition and trend of online shopping which is expected to continue," says Second Chance in its Thursday filing.

In addition, the gold business is expected to remain profitable while the loss of rental income from properties sold while negative rental reversions will result in lower rental income for the group. the company added.

Year to date, shares in Second Chance are trading 2 cents higher at 24 cents.