TA Corp H2 net profit up 9% to S$11.7 million

PROPERTY and construction company TA Corporation : PA3 0% posted a 9 per cent rise in net profit to S$11.7 million for its second half ended Dec 31, 2023, from S$10.8 million in the previous corresponding period.

Earnings per share stood at S$0.0227 for the half-year, up from S$0.0207 in the year-ago period, TA Corp said in a regulatory filing on Thursday (Feb 29).

However, revenue for H2 fell 80.4 per cent to S$43.4 million from S$221.1 million a year earlier.

This was attributed mainly to lower revenue from the company’s construction segment, due to the liquidation of its wholly owned subsidiary Tiong Aik Construction in July 2023. Revenue for the segment fell by S$70 million from a year earlier to S$16.9 million.

Meanwhile, TA Corp’s real estate investment segment had higher revenue due to improved bed rates at Tuas South Dormitory.

Revenue from its real estate development segment declined, due to less revenue from its overseas developments being recognised, while its distribution segment also recorded lower revenue from its lubricant business in Myanmar.

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Other income rose by S$90.6 million from a year earlier to S$108 million, due to a gain in fair value of investment properties.

No dividend was declared for the half-year, unchanged from the year before.

The company reported a net loss of S$7.6 million for the full year, a reversal from the S$12.1 million net profit recorded in FY2022.

Revenue slid 61.3 per cent to S$138.1 million in FY2023, compared with S$356.4 million a year earlier.

TA Corp expects the operating environment to remain challenging, as competition stays strong while construction costs remain high, affecting project margins negatively.

However, the company remains positive about its purpose-built workers’ dormitory, due to high demand from the migrant worker population, it said.

Meanwhile, its precast and prefabrication segment expects to capture the increasing local market demand for such products, it added.

Shares of TA Corp last traded at S$0.073. The company on Jul 17, 2023, requested a voluntary suspension of its shares pending the engagement of its stakeholders and clarity on its financial position.