Roxy-Pacific Holdings H1 net profit more than doubles to S$5.9m

PROPERTY and hospitality group Roxy-Pacific Holdings on Thursday posted a first-half net profit of S$5.9 million, up 110 per cent from S$2.8 million in the same period a year earlier.

Revenue in the six months ended June 30 was S$141.2 million, up 20 per cent from S$118.1 million, thanks to higher sales from its property development and property investment segments.

Chairman and chief executive Teo Hong Lim said that the group's financial results have "held resilient" amid the global pandemic, "well-supported by a diversified portfolio of assets and a broad geographical reach".

The group will continue to be "selective" in landbank acquisition, he said, and focus on freehold developments that are well-located.

Revenue from the group's property development segment stood at S$126.5 million, up 27 per cent from S$99.3 million last year. This contributed 90 per cent of the group's turnover.

The growth was mainly due to a higher percentage of revenue recognition from development projects in Singapore, mainly from RV Altitude, View at Kismis and 120 Grange.

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However, this was partially offset by absence of revenue recognition from Octavia Killara and West End Glebe, Australia, which obtained its Temporary Occupation Permit (TOP) in FY2020, it said. As at June 30, the group has a total attributable pre-sale revenue of S$564.4 million, the profits from which will be progressively recognised from the second half of 2021 to 2023.

Mr Teo said: "We remain prudent and will keep a close eye on property market sentiments, both locally and abroad, amidst the challenging environment brought on by the global pandemic."

For property investment, the group's priority is on building up its recurring income base through proactive asset management, he said, adding that this is for greater resiliency.

Meanwhile, for the hotel segment, the group's efforts are focused on the "streamlining of processes, operational efficiencies, and training of manpower to improve productivity, to be on a stronger footing once the travel market recovers", Mr Teo noted.

The group noted that its hotel operations have been affected by the Covid-19 outbreak. Revenue from the hotel ownership segment fell by 29 per cent to S$10.7 million.

First-half earnings per share was 0.45 Singapore cent, up from 0.21 cent in the same period a year earlier.

Its gross profit margin rose from 15 per cent in H1 2020 to 18 per cent, due to higher contribution from the property development segment with an improved profit margin.

Net asset value per share was 37.33 Singapore cents as at June 30.

Roxy-Pacific shares closed up 1.5 Singapore cents or 3.7 per cent to close at S$0.425 on Thursday.