Roxy-Pacific Holdings Q4 net profit soars 332% to S$20.2m

PROPERTY and hospitality group Roxy-Pacific Holdings on Thursday posted a fourth-quarter net profit of S$20.2 million, up 332 per cent from S$4.7 million in the same period a year earlier.

Revenue in the three months ended Dec 31, 2019 was S$261 million, up 747 per cent from S$30.8 million. 

Chairman and chief executive Teo Hong Lim said: "In 2019, we successfully launched all six remaining developments during the year, comprising a total of 606 units. We are greatly encouraged by the warm response received for our residential projects.

"Most recently, NEU at Novena, which was launched in October 2019, experienced strong demand and has already sold 77 per cent of the total units."

Mr Teo added: "Our diversified revenue streams across geographical markets and asset classes continue to deliver positive and resilient results. Apart from the significant revenue contributions from our property developments in Singapore and Sydney, our investment properties in Australia and New Zealand enjoy high occupancy rates and continue to provide us with good recurring income. Meanwhile, the hotel ownership segment continues to provide a stream of recurring income, which is expected to grow gradually as our newer assets mature and stabilise." 

Fourth-quarter earnings per share was 1.55 Singapore cents, up from 0.36 cent in the same period a year earlier.

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Full-year earnings per share was 2.32 cents in 2019, up from 1.63 cents in 2018.

Full-year net profit rose 42 per cent to S$30.3 million on the back of a 234 per cent surge in revenue, driven by revenue recognition from the property development segment.

However, gross profit margin fell from 38 per cent in 2018 to 24 per cent, due to higher contribution from property development which has a lower profit margin.

A final dividend of 1.09 cents per share has been proposed, to be paid on Apr 30. This is higher than the final dividend of 0.705 cent declared last year. Together with the interim dividend of 0.195 cent per share, total dividends for 2019 will be 1.285 cents per share, up from 0.90 cent per share in 2018.

Net asset value per share was 39.16 cents as at Dec 31, 2019. Net gearing stood at 0.58 times, the group said.

Based on units sold from its ongoing development projects, the group has total attributable pre-sale revenue of S$471.2 million, the profits of which will be recognised from the first quarter of 2020 through to 2023, it added.

Roxy-Pacific shares last changed hands on Wednesday at S$0.37.