Hiap Hoe profit down 17.8% to $13.3m

3Q12 revenues increasingly came from lower-margin activities.

"For 3Q12 gross profit fell 6.6% to $13.6m, mainly due to higher proportion of income generated from construction activities, which yield lower margins compared to property development activities," said  Hiap Hoe in its unaudited financial statements for the most recent quarter.

"Progressive revenue recognition from the sale of residential projects amounted to $24.6m in 3Q12, representing a 24.8% reduction from $32.7m in 3Q11. However, this decline was offset by the 101.3% increase in progressive revenue recognition to $15.9m, from the construction of its two joint-venture developments, namely The Beverly, and the integrated hotel/commercial development on Balestier Road/Ah Hood Road," it said.

However, the niche property developer was quick to point out that despite the dip in profit attributable to shareholders in 3Q12, the combined total for the 9M2012 period is still positive, rising 28.1% to $44.1m, from $34.4m in 9M2011.