SINGAPORE (Nov 8): Thakral Corporation reported 3Q18 earnings of $0.22 million, 99% lower compared to $33.5 million in 3Q17.

During the quarter, the group did not register a valuation gain on assets held for sale, as compared to $34.2 million seen in the same period last year from the group’s warehouse properties in Hong Kong and the related cost upon signing of the sales agreement.

Excluding these, the group would have made a net profit of $7.2 million for the current period, 11% higher than the previous year.

Revenue for the quarter was 3% lower at $38.3 million from $39.6 million last year while cost of sales decreased by 1% y-o-y to $26.9 million.

As a result, 3Q18 gross profit came in at $11.4 million, 8% lower than $12.4 million a year ago.

For the 9M18, earnings came in at $4.25 million, 88% lower than $36.2 million in 9M17.

The group has declared a second interim dividend of 2 cents per share, payable on Nov 30.

Looking ahead, Natarajan Subramaniam, independent non-executive chairman of Thakral, says, “While the group will stand to enjoy returns from our steady pipeline of projects from our retirement resorts and project completion, we will be taking a cautious and prudent approach in the coming months. We will continue to reduce our exposure to the Australian housing market and focus on the retirement resorts business which we believe will bring us better long-term prospects. We will also be selective in our investments in Japanese commercial properties and do our best to achieve a turnaround of our Lifestyle Division.”

Shares in Thakral closed at 42 cents on Thursday.