GuocoLand falls by nearly 3% after reporting slump in H2 net profit to S$32.4 million

[SINGAPORE] Shares of GuocoLand tumbled by close to 3 per cent on Friday (Aug 29) morning, following the announcement of its net profit for the second half ended Jun 30 falling 48 per cent to S$32.4 million, from S$62.4 million in the same period in the year before.

As at 9.02 am, the property developer’s shares inched down to S$1.86, before declining 2.7 per cent or S$0.05 to S$1.83 by 9.07 am. The counter rose back to S$1.84 by 9.23 am, still down 2.1 per cent or S$0.04, after 174,100 securities were transacted.

The mainboard-listed group said the lower H2 net profit came mainly from losses in China offsetting growth in Singapore. The group also said it sees issues in the Chinese residential market continuing, noting an allowance for foreseeable losses of S$81.8 million in the second half of its financial year for development properties in China, reported The Business Times on Thursday evening.

Earnings per share for the six-month period declined to S$0.0256 from S$0.0479 in the same year-ago period.

A first and final dividend of S$0.07 per share was declared for the period, up from S$0.06 the year before. It will be paid on Nov 19, after books closure on Nov 6.