GuocoLand's net profit up 48% for FY21 to S$169.1m, despite dip in revenue

PROPERTY developer GuocoLand has posted a 48 per cent year-on-year increase in net profit to S$169.1 million for the full year ended June, despite a 9 per cent fall in revenue.

Revenue stood for FY21 at S$853.7 million, down from S$934.8 million a year ago, going by the interim financial statements released by the mainboard-listed company on Thursday.

This was partly due to lower progressive recognition of sales year on year from its Singapore residential projects, as sales and construction of its Martin Modern project in River Valley reached its tail end and other projects were still in early stages of construction, GuocoLand said.

At the same time, the group's hotel segment and investment properties in Malaysia registered lower revenues because of the Covid-19 pandemic, it said.

The group's other income fell 13 per cent to S$138.9 million. This included a one-time gain from the sale of Guoman Hotel in Shanghai and a fair-value gain on investment properties of S$71.5 million, largely from Guoco Tower and Guoco Midtown in Singapore.

Earnings per share was 13.52 cents, up from 8.57 cents in the previous financial year.

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Company directors have proposed a final dividend of 6 cents per share, on par with the payout last year.

The company said it sold close to 1,500 residential and commercial units in Singapore, China and Malaysia in FY21, with a total value of about S$1.4 billion.

In Singapore, its Midtown Modern project in Bugis had sold 67 per cent of its 558 units as at June 30, after having been launched in March. Martin Modern was 94 per cent sold, and Wallich Residence in Tanjong Pagar, 71 per cent sold. Midtown Bay in Beach Road and Meyer Mansion were 29 per cent and 33 per cent sold respectively.

In China, GuocoLand is developing its inaugural project in Chongqing; its Guoco Changfeng City in Shanghai will begin partial operations next month.

The group's projects in Malaysia have also continued to sell well, including Garland Residence in Selangor, which has been fully sold.

The Covid-19 pandemic still weighs on the company's property development business in Singapore and Malaysia, but it said it has become more resilient against disruptions.

"Many of the group's residential and commercial projects have already factored in a new way of working and living into their design," the group said, in reference to the trend of working from home. The company noted that its office buildings feature advanced air-quality management systems.

"Going forward, we will leverage our development and asset-management capabilities to identify and seize more opportunities, and create value for shareholders," said Cheng Hsing Yao, GuocoLand Group chief executive said.

GuocoLand's shares closed flat at S$1.62 on Thursday.