MALAYSIAN tycoon Quek Leng Chan’s Singapore-listed property unit GuocoLand has posted net earnings of $60.4 million for the second quarter ended Dec 31, 2009, a significant jump from the $861,000 earnings in the same year-ago period.
The improvement was due mainly to China property development projects on the back of strong sales from Ascot Park condo in Nanjing and the sale of an office block in an integrated mixed development project in Shanghai’s Changfeng district.
In Singapore, the group is expected to preview a couple of condominium projects after the Chinese New Year festivities – Goodwood Residence along Bukit Timah Road and Waterline on the former Toho Gardens site at Yio Chu Kang Road. In 2008, GuocoLand sold 36 units in the 210-unit Goodwood Residence to Kuwait Finance House for $2,800 per square foot.
For Q2, share of profit after tax from associates fell 77 per cent to $1 million due to lower revaluation gains on investment properties recognised by Tower Reit in Malaysia. Income tax expense rose from $3.6 million to $25.5 million on the back of higher profit contribution from China development projects.
GuocoLand’s Q2 revenue rose 284 per cent to $363.7 million.
For the first half ended Dec 31, 2009, GuocoLand achieved net profit of about $72.8 million, against a net loss of nearly $2 million in the same year-ago period. Revenue increased 85 per cent to $459.4 million. The group said that its 1,112-unit Ascot Park is almost fully sold. At its Changfeng project, it has sold about 70 per cent of small office, home office units. In November last year, GuocoLand sold an office block in the same project for 1 billion yuan (S$208.4 million).
In Singapore, construction of the 272-unit Sophia Residence, which is more than 90 per cent sold, has not begun. The 119-unit Elliot At The East Coast, which is about 70 per cent sold, is at an initial phase of construction.
GuocoLand’s cash and cash equivalents rose from $581.8 million as at end-June 2009 to almost $711 million at end-December 2009, due to proceeds received from sales of development properties. No dividend has been declared.
Looking ahead, the group noted it has enjoyed healthy sales in its property development projects in Singapore and China. ‘As part of the ongoing review of its strategies, the group will continuously source for land for development, and prime its launch-ready projects for sale at the right time,’ GuocoLand said in its results statement.
On the stock market yesterday, GuocoLand closed 12 cents lower at $2. The fall came amid a general retreat in the market.
Source : Business Times – 6 Feb 2010
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