Lion Teck Chiang net profit surges 73%

Singapore Companies
Published August 26, 2006


Lion Teck Chiang net profit surges 73%
Strong rental returns, sales of M'sian properties boost earnings


By VEN SREENIVASAN



ROBUST rental returns, increase in sales of properties in its Malaysian townships and better margins for its steel business boosted Lion Teck Chiang's full-year net earnings by 73 per cent to $5.2 million.


Group turnover rose 8 per cent to $91.6 million for the 12 months to June 30, 2006. Earnings per share came to 2.69 cents.

The company also benefited from lower taxation. But finance costs went up due mainly to higher interest rates.

One of the biggest boosts was the rental income from its Skudai hypermart, which contributed to a 29 per cent rise in rental turnover to $4.6 million. Sales of residential properties in its Skudai township also contributed to both the top and bottomline.

The only dark spot on its property division was Singapore, where turnover fell 10 per cent to $11 million following the completion and sale of its Dunman Place project.

But the company is expected to see a strong surge in Singapore property contribution when it completes and sells its seven bungalow lots in the District 15 area. The company expects interest in the property to 'attract firm interest' when launched in FY07.

Turnover for the steel division rose 10 per cent to $75 million. Gross profit surged more than fourfold from $1.4 million to $6.2 million as the company enjoyed better margins due to steel prices stabilising during the year. Net operating profit from its steel business was $3.2 milion, up from $2.4 million.

The company announced a first and final dividend per share of half a cent less tax.

Lion Teck Chiang's shares closed a cent down at 27 cents yesterday.