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GuocoLand Q4 net profit up 24% at S$183.7m

Its full-year net profit is, however, 38% down at S$255.7m, which it puts down to lower sales of completed residential units

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Guocoland's net profit attributable to equity holders rose 24 per cent to S$183.7 million for the fourth quarter ended June 30, up from a restated S$147.5 million in the year-ago period, it announced on Friday.

Singapore

GUOCOLAND'S net profit attributable to equity holders rose 24 per cent to S$183.7 million for the fourth quarter ended June 30, up from a restated S$147.5 million in the year-ago period, it announced on Friday.

This was on the back of an 81 per cent rise in revenue to S$323.5 million from S$178.5 million, which GuocoLand attributed mainly to progressive revenue recognition of residential projects in Singapore and Malaysia.

Earnings per share for the quarter were 16.09 Singapore cents, up from 12.79 cents in the year-ago period.

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A first and final dividend of seven Singapore cents was proposed, consistent with the previous two financial years.

Despite the fourth-quarter performance, full-year net profit was down 38 per cent at S$255.7 million, compared with S$413.2 million the year before. Full-year revenue was down 19 per cent at S$927 million from S$1.14 billion the year before.

GuocoLand said the lower revenue was due mainly to lower sales of completed residential units in Singapore, as it has brought down its inventory of completed unsold units substantially in the previous year.

It noted that its gross profit margin was maintained at about 32 per cent.

GuocoLand group president and chief executive officer Raymond Choong said the group has recorded "healthy sales" for current residential projects in Singapore and Malaysia, and good occupancy rates at investment properties in Singapore.

"The group has demonstrated its development and execution capabilities through its recent projects such as Guoco Tower and Martin Modern, and we are confident that our upcoming pipeline of projects will be met with keen interest due to their prime locations and strong product attributes," he added.

GuocoLand is preparing two residential projects for launch in Singapore: Midtown Bay, the residential component of Guoco Midtown with just over 200 units, and the Casa Meyfort freehold en bloc site at Meyer Road close to Katong. In Malaysia, the subsequent phases of Emerald Hills and Emerald 9 are scheduled to be launched in the coming months.

Construction has progressed steadily for mixed-use developments Guoco Changfeng City in Shanghai and Guoco Midtown in Singapore, which are scheduled for completion in 2021 and 2022 respectively.

GuocoLand shares closed up one Singapore cent or 0.5 per cent at S$2 on Friday before the release of the results.