SINGAPORE (Nov 7): Property group SingHaiyi saw 2Q18 earnings ended Sept rise 58.8% to $6.2 million from $3.9 million a year ago on higher revenue.

The group recorded total revenue of $106.7 million for 2Q18 compared to just $13.3 million a year ago, arising mainly from the revenue recognised for the group’s completed executive condominium (EC) project, The Vales.

Rental income, however, fell 16.6% to $2.1 million from $2.5 million previously due to the ongoing asset enhancement initiative (AEI) program underwent by Tri-County Mall (TCM) in the US.

In line with the higher revenue, cost of sales grew to $92.4 million from $7.3 million previously.

Gross profit margin however fell 31.5 percentage points due to a change in geographical revenue mix as more revenue from property development with a lower profit margin was recognised in 2Q18.

Another contributing factor, says SingHaiyi, was the decline in gross profit margin for rental income due to TCM’s ongoing AEI programme.

For the 1H18 ended Sept, the group’s earnings stood at $31.1 million, up more than fourfold from $7.6 million in 1H17.

SingHaiyi says it remains cautiously optimistic of the outlook for the Singapore property market amid the increases in recent housing transactions and en-bloc sales activities. While the US real estate market remains reasonably stable, the group says it intends to remain focus on delivering its pipeline of develoment projects in the country.

Looking ahead, the group intends to continue to exploring suitable land bank acquisitions as well as opportunities in property development and investments to deliver growth, strengthen its earnings base and to enhance shareholder value.

Shares in SingHaiyi closed flat at 12 cents on Tuesday.