Hong Fok H1 net profit jumps 80% to S$9.1m

PROPERY developer Hong Fok Corporation net profit rose 80 per cent to S$9.1 million for the first half of the fiscal year ending Jun 30, 2022, from S$5.1 million in the year-ago period.

Revenue rose 30 per cent to S$55.6 million from S$42.8 million previously.

In a bourse filing on Thursday (Aug 11), the property developer attributed the increase in revenue to increases in sales of the residential units of Concourse Skyline, net increase in rental income of its properties mainly from the hotel, Yotel Singapore Orchard Road.

However, these increases were partially offset by a decrease in property management income, it added.

“The performance of Yotel has experienced a recovery in the first half of 2022 due to the pent-up global demand for travel. If this pent-up demand stays and the economic outlook continues to improve, the occupancy rate and room rates of Yotel should improve,” the group noted. “However, the increase in energy cost and higher agents’ commission cost may dampen Yotel’s contribution to the group.”

Earnings per share stood at S$0.0138, up from S$0.0076 previously.

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Hong Fok noted that the leasing momentum of office and retail units is generally healthy and hence the occupancy rate of the group’s other investment properties is expected to remain stable.

“The demand for residential market is expected to remain strong. However, rising mortgage home loans interest rates may affect market sentiments on the sales of residential properties. The group is expected to continue to recognise revenue from the sales of the residential units in Concourse Skyline,” the group added.

Shares in Hong Fok closed up 1 per cent or S$0.01 to S$1.01 on Thursday, before the announcement was made.