Sysma Holdings' net profit crumbles 13.9% to $2.5m

Higher cost of sales of property projects hurt its earnings.

Singapore-listed construction firm Sysma Holdings might be feeling the effects of the muted property market as it posted a 13.9% drop in net profit for FY 2016.

While its revenue boomed 28.3% to $126.2 million on the back of increased contributions from three property development projects, its net profit declined to $2.5 million from the last year's record of $2.9 million.

The firm also posted higher cost of sales, shooting 31.3% up to $117 million. This is primarily due to property development projects of $28.1 million. This was however, partially offset by lower cost of sales of the group's construction projects.

Looking forward, Sysma Executive Chairperson Sin Soon Teng said although both construction and property development projects has been challenging, the group still managed to hold on.

“We are gratified to deliver a profitable year in spite of the global and industry headwinds. We continue to be cautious in evaluating projects before we select and embark on suitable projects," he stressed.

He added, "In the near term, we will focus on executing our projects seamlessly and complete the existing ones in time."