Pacific Star Development, an ASEAN real estate developer listed on the Singapore Exchange, reported net profit of S$14.5 million for 9M2017, excluding a S$3 million net loss from discontinued operations.
♦ Net profit surged 20% to S$5.4 million for 3Q2017 and 39% to S$14.5 million for 9M2017, excluding net loss from discontinued operations
• Revenue up 26% to S$20.3 million for 3Q2017 and 27% to S$53.2 million for 9M2017, due mainly to higher sales and progressive completion of Puteri Cove Residences & Quayside
• Favourable macroeconomic conditions in ASEAN, so the Group makes headway in its expansion plans, forging strategic partnerships with DAMAC International and other investor groups to develop prime and luxury properties in this region
The discontinued operations belonged to LH Group which underwent a reverse takeover in Feb 2017.
The newly-injected property division has since driven the majority of Pacific Star's sales and profit.
The Group’s revenue of S$20.3 million for 3Q2017 and S$53.2 million for 9M2017 were mainly attributed to the sales of the multi award-winning mixed-use development, Puteri Cove Project in Iskandar Puteri, Malaysia.
The Group recorded gross profit of S$10.0 million for 3Q2017 and S$25.7 million for 9M2017, with gross profit margins of 50% and 48%, respectively.
Overall, the Group recorded a strong increase in net profit of 20% to S$5.4 million for 3Q2017 and 39% to S$14.5 million (excluding net loss from discontinued operations) for 9M2017.
Net profit attributable to equity holders stood at S$2.2 million and S$4.0 million for 3Q2017 and 9M2017, respectively.
"In the last quarter, we have made great headway in widening our geographical footprint in ASEAN through partnerships and strategic collaborations.
"We have formed a pipeline of expansion opportunities in new and existing markets, aligning ourselves with Asia’s growth trajectory and positioning PSD positively to capitalise on the uptrends.
Commenting on the results, Mr Glen Chan, CEO and MD of PSD, said, “We have achieved a respectable set of results and remain optimistic that the improving market sentiment will support demand growth for our two existing projects in Iskandar Puteri and Bangkok.
"The upsurge in economic and business activities will likely stimulate broad-based demand from property investors and tenants, especially for well-conceptualised integrated projects in prime locations. Thus, we will seek to expand our customer network and increase our development projects as a premium developer in this region.”
In 3Q2017, the Group entered into a Memorandum of Understanding with PT Kukuh Mandiri Lestari to jointly develop mixed-use high-rise developments on 10 hectares of prime sea-front land in Pantai Indah Kapuk in North Jakarta, Indonesia.
The Group also entered into a strategic partnership via a framework agreement with DAMAC International, a leading property developer in the Middle East, to develop luxury properties in key cities across Southeast Asia over the next five years.
Watch corporate video of Puteri Cove project -->