SC Global's sales still up despite luxury residences slump in Singapore

The luxury real estate developer posted impressive results for the first nine months of 2010, with revenue rising 11% y-y to S$191.6 mil, and PATMI soaring 517% to S$33.4 mil.

On the 9 months basis, revenue increased 23% y-y to S$650.0 mil y-y while PATMI increased 268% to S$87.2 mil. The increase was attributed to higher revenue recognition from its development projects, The Marq on Paterson Hill, Hilltops and Martin No. 38. Higher revenue contribution also registered from its development project in China, Kairong International Gardens in Shenyang and from its subsidiary, AVJennings in Australia. Following this quarter’s strong results, PATMI for the 9 months have exceeded the full year results of S$56.9 mil in FY09

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Despite the poor market sentiments in the local luxury residential segment since the last quarter, SC Global fully sold the 384 residential residential units from the third phase of its Kairong International Gardens Some additional 200 units were released subsequently and also fully sold. Prices of the recent sales were 5% higher than the previous launch in 1Q2010.

The slump has been attributed to the government’s cooling measures on the property market taking its effect.
In a statement, Phillip Securities Research has adjusted its progress recognition from SC Global’s Singapore development projects due to the company’s strong quarterly results. Estimates on revenue have been increased to S$790.9 mil and PATMI to S$99.3 mil for FY10.