Hong Fok’s H2 net profit plummets 75.2% as revaluation gain dives
However, revenue for the period is flattish at S$59.7 million
HONG Fok ’s net profit for the second half of financial year 2024 dived 75.2 per cent to S$20.1 million, from S$81.2 million in the year-ago period, as the revaluation gain on investment properties plummeted.
The revaluation gain was only S$11.8 million for the H2 ended December, 86.4 per cent lower than the S$87.1 million in 2023 for its investment properties, based on the financial results filed on Friday (Feb 28) by the property player.
Its revenue for the period was more or less flat, however, at S$59.7 million compared with S$59.8 million in H2 FY2023.
Earnings per share, consequently, dropped to S$0.0313 from S$0.1266 in the same period in the previous year.
A first and final dividend of S$0.01 per share will be paid on a date to be determined if approved by shareholders, and the quantum is unchanged from FY2023.
For FY2024, revenue decreased by 6 per cent from the prior year to S$104.3 million, mainly due to lower revenue from the sale of its residential units in Concourse Skyline and the income from its investment properties being affected by lower occupancy rates.
Net asset value per share stood at S$3.61 as at end-FY2024, up from S$3.57 as at end-FY2023.
For 2025, the group said that rental income for investment properties is likely to remain stable, while the hotel industry in which it operates is likely to continue to face certain economic and operational challenges.
Hong Fok shares closed up 4.3 per cent or S$0.035 at S$0.845 on Friday, before the financial results were published.
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