Hong Fok Corporation reports profit of S$41.8m for FY2021

HONG Fok Corporation has reported a profit of S$41.8 million for FY2021 ending Dec 31, a reversal from a loss of S$8.7million a year prior, rising in tandem with revenue.

In a filing on Monday evening (Feb 28), the property developer declared a first and final 1-tier exempt dividend of 1 Singapore cent per share.

Earnings per share for FY2021 rose from 5.08 Singapore cents to 5.83 Singapore cents.

Revenue for FY2021 rose 13 per cent from S$80.4 million to S$90.5 million, driven mainly by sales of more residential units of Concourse Skyline, the last unit of Jewel of Balmoral, higher property management income and dividend income. This was partially offset by lower rental income from YOTEL Singapore Orchard Road and investment properties in Hong Kong.

The ongoing pandemic has impacted the performance of YOTEL in the past two years. But with the opening up of vaccinated travel lanes to more countries, its performance might improve, however the speed of recovery is difficult to predict according to Hong Fok.

The property development segment is facing headwinds with travel restrictions reducing the pool of potential foreign buyers. Coupled with property cooling measures in Singapore which may impact the sale of residential properties in the island republic.

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"The Group will strive to remain resilient and will take a cautious approach in its search for properties for investment or development and other business opportunities," said Hong Fok.

Shares in Hong Fok closed up 0.7 per cent or S$0.005 to S$0.725 on Monday.