Property group SingHaiyi reported 1Q18 earnings surged 7.5 times to $16.4 million from $2.2 million a year ago.

Revenue surged 26.4 times to $282.9 million from $10.7 million, lifted mainly by revenue recognised for the group’s completed Executive Condominium (EC) project, The Vales.

Revenue contribution in 1Q17 came mainly from sales of completed units from Vietnam Town. The lower rental income in 1Q18 was attributable to ongoing Asset Enhancement Initiative (AEI) programme underwent by Tri-County Mall (TCM) in the US. Management fee income pertained to project management services rendered in Singapore.

Cost of sales widened to $251.7 million from $5.4 million a year ago, in line with the recognition and increase in property development income.

Gross profit margin decreased by 38.3 percentage point year-on-year, due to the change in geographical revenue mix as more revenue from property development with a lower profit margin was recognised in 1Q18. Gross profit margin of rental income remains stable.

As market sentiment continues to trend positively judging from the successful new launches of recent residential property projects as well as the robust land biddings and active collective sales market, SingHaiyi is cautiously optimistic of the outlook for the Singapore property market.

Over in the US, the real estate market remains reasonably stable, and the group remains focused on delivering its pipeline of development projects.

Shares in SingHaiyi closed 0.3 cent lower at 12 cents.

Discover SingHaiyi's latest venture, the 56-unit freehold City Suites

This article originally appeared on The Edge Markets