UIC posts 35% higher 1Q earnings of $81 mil on higher contribution from associated companies

UIC posts 35% higher 1Q earnings of $81 mil on higher contribution from associated companies

By: 
Samantha Chiew
23/04/19, 06:02 pm

SINGAPORE (Apr 23): United Industrial Corporation (UIC) declared earnings of $81.1 million for 1Q19, 35% higher than $60.2 million in 1Q18.

This came on the back of a 12% increase in revenue to $185.3 million from $165.7 million a year ago, mainly due to higher sales of trading properties with higher sales achieved for the group’s residential development projects; higher contribution from investment properties; and higher contribution from information technology operations. The group’s hotel operations remained stable.

As cost of sales also increased by 17% y-o-y to $105.5 million, gross profit for 1Q19 came in at $79.8 million, 5% higher than $75.7 million in the previous year.

Interest income surged 144% to $3.9 million from $1.6 million last year.

Share of results of associated companies saw a significant increase of 269% to $28.7 million, compared to $7.8 million a year ago, mainly due to the contribution from the Park Eleven (Shanghai) residential project arising from the handover of completed units in 2019.

As at end-March, the group’s cash and cash equivalents stood at $250.2 million.

To recap, the group on Apr 17 acquired a 24.27% stake in Marina Centre Holdings and 25% stake in Aquamarina Hotel. The financial impact from these transactions will be effected in 2Q19.

See: United Industrial Corp raises stake in Marina Centre to 77.34% with $675.3 million deal

On the outlook, the group expects office rentals to remain firm amid healthy demand and a reduction in new supply in the CBD, but retail rents are expected to face challenged from e-commerce, rising costs of business and new supply of retail space.

Meanwhile, the residential market is assumed to remain soft with the prevailing cooling measures and substantial new supply in the pipeline. Developers are also becoming more selective in replenishing land banks for residential developments.

The hotel sector is expected to do well in Singapore amid rising tourist arrivals.

Shares in UIC closed at $3.11 on Tuesday.

Counsels argue over how witnesses' conditioned statements were prepared and used

SINGAPORE (May 23): The prosecution and defence in the 2013 penny stock crash trial on Thursday crossed swords over how conditioned statements had been prepared, and the relevancy of questions raised in cross-examination of these statements. Deputy public prosecutor Peter Koy said questions by the defence counsels for alleged co-conspirators John Soh Chee Wen and Quah Su-Ling were a “distraction from the facts”. “Questions as to what was shown to the witness, what trade and telephone data were shown to the witness, which data was filtered and shown to the witness, are irrelevant to....
Read More >>

Boustead Projects records 2% dip in 4Q earnings to $5.7 mil despite revenue surge

SINGAPORE (May 23): Real estate solutions specialist Boustead Projects posted a 2% drop in earnings to $5.7 million for the 4Q19 ended March, compared to restated earnings of $5.8 million for 4Q18. This brings full year earnings for FY19 to $30.6 million, some 5% higher than earnings of $29.2 million a year ago. The group recorded earnings per share (EPS) of 1.8 cents for 4Q19, the same as a year ago. For FY19, EPS rose to 9.8 cents, compared to 9.1 cents for FY18. The decline in 4Q earnings was mainly due to lower gross margins in design-and-build projects and depreciation incurred o....
Read More >>

Sunpower wins $8.7 mil contract from repeat customer

SINGAPORE (May 23): Sunpower Group, the environmental protection solutions specialist, has signed a RMB43.56 million ($8.7 million) contract with repeat customer Zhejiang Petrochemical Co. Sunpower will provide high-efficiency heat exchangers for one of China’s largest domestic atmospheric and vacuum pressure units with an annual capacity of 10 million tons, which is part of Phase 2 of Zhejiang Petrochemical’s refinery and chemical integration project. The project is part of China’s 13th Five-Year National Petroleum and Chemical Plan. Sunpower started its partnership with Zhengj....
Read More >>