Evergro Properties’ net profit more than triple in Q1

Evergro Properties saw net profit more than triple to S$389,000 in the first quarter of 2009, compared to S$101,000 a year ago.

The increase was largely due to a 21.5 per cent jump in interest earned from bank and other deposits amounting to S$134,000 in the three months ended March 31.

Evergro, which is a unit of Keppel Land, said revenue fell by 39.2 per cent on-quarter to S$5.7 million in the first quarter on slower sale of golf memberships as well as fewer residential units launched for sale.

The firm, which is focused on the development and management of property in China, said the first quarter has always been a lull period for the Chinese real estate market.

Evergro said even though market confidence and sales have picked up due to reduction in prices by developers, it is still too early to predict a recovery in the market.

It said sales started to improve in March for the group’s three residential projects and two golf courses. It expects this trend to continue in the second quarter of 2009 barring any unforeseen circumstances in the global economy.

The company also noted that interest in Phase 2 of its Tianjin project has increased and it expects sales for that development to continue.

Source : Channel NewsAsia – 20 Apr 2009

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