By Romesh Navaratnarajah: Mainboard-listed construction and property firm Tiong Seng Holdings Ltd has announced that net profit attributable to equity holders jumped 134 percent to S$5 million in the first quarter, from S$2.139 million over the same period last year.
It said the increase in net profit for the quarter was mainly attributed to higher contributions from construction contracts which grew 81 percent to S$103.0 million and contributed towards a 67 percent increase in overall revenue.
Meanwhile, revenue from construction contracts reached S$101.2 million, with S$64.5 million generated from more work done for new and existing projects in Singapore, including Hundred Trees, Tree House, Waterway Terraces I, The Wharf Residence, The Glyndebourne and The Volari.
"Although construction demand remains at healthy levels given the strong demand from the public sector in the next 3 years, we will remain steadfast in our pursuit of best practices to continually raise our competitive edge," said Pek Lian Guan, Chief Executive of Tiong Seng Holdings.
"This is necessary in meeting ongoing industry challenges, such as higher material costs and foreign workers' levies, and stiff competition from large foreign contractors."
Meanwhile, construction and sales of Phase One of City Residence in Cangzhou, China has been completed as of 31 March 2012. Other phases are under construction and sales for the second and fourth phases commenced during Q2 2011 and Q4 2011 respectively.
In addition, the firm is constructing Phases One, Two and Three of The Equinox project, a mixed development in Tianjin. Sales of the first phase started in Q4 2011. Related Stories:CDL posts 44.5% profit drop
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