Bukit Sembawang H2 earnings up 13% at S$51.4 million; company proposes higher special dividend

[SINGAPORE] Property developer Bukit Sembawang Estates reported net profit after tax of S$51.4 million for the second half of its financial year ending Mar 31, a 13 per cent increase from S$45.6 million over the same period the previous year.

The increase was mainly due to higher profits being recognised for residential development projects Pollen Collection, Liv@MB and Fraser Residence Orchard, said the property developer via a bourse filing on Monday (May 26).

However, revenue fell 24 per cent to S$225.9 million from S$297.7 million over the same period mainly due to the absence of revenue contribution from a completed project called The Atelier, which had its revenue fully recognised in the previous half-year reporting period.

The gap for cost of sales narrowed to S$166.5 million from S$252.7 million. However, gross profit rose 32 per cent to S$59.4 million in H2 FY2025.

As a result, earnings per share increased to S$0.1984 from S$0.1762 over the same period.

While higher profits were recognised from the property development segments, there were lower profits from the hospitality segment.

This was due to lower impairment loss on property, plant and equipment at Fraser Residence Orchard.

The company said that the cooling measures implemented in April 2023 – when the government hiked Additional Buyer’s Stamp Duty rates to 60 per cent for foreigners – continued to dampen property demand, particularly from foreign buyers as well as investment-driven purchases by Singaporeans and permanent residents.

“At the same time, a cautious economic outlook, both globally and locally, is weighing on investor sentiment. Within this context, the residential property market remains challenging, with elevated construction and development costs continuing to put pressure on margins,” the group said.

“The group will continue to monitor the progress of construction of our ongoing projects to ensure timely completion. It will also adopt a prudent and measured approach in calibrating the timing of upcoming launches of residential projects, in alignment with prevailing market conditions and buyer sentiment.”

For the full year, earnings surged 61 per cent to S$114.3 million on a 2 per cent dip in revenue to S$550 million.

The group proposed a final dividend of S$0.04 and special dividend of S$0.16 a share; compared with S$0.04 and S$0.12 the year before.

Shares of Bukit Sembawang Estates fell 0.3 per cent or S$0.01 to close at S$3.92 on Monday.