Ho Bee FY2006 net profit leaps 158.9% to $98.6m

Singapore Companies

Published February 27, 2007

Ho Bee FY2006 net profit leaps 158.9% to $98.6m

By WEE LI-EN


PROPERTY developer Ho Bee Investment announced a 158.9 per cent leap in full-year net profit to a record $98.6 million, buoyed by strong development property sales.

It is confident that the current year's performance will be even better as progressive recognition of income from its fully sold and substantially sold projects contribute significantly to its revenue and earnings for the 'next couple of years'.

Sales of the group's development property for the year ended Dec 31, 2006, surged 160 per cent to $382.2 million, causing revenue for the year to double to $393 million. Progressive recognition of income from residential projects was the main contributor, accounting for 72 per cent of revenue from property development.

These projects are The Berth by the Cove, The Berthside and Coral Island in Sentosa Cove, Montview at Mount Sinai and Vertis at Amber Gardens.

Profit for the fourth quarter leapt seven-fold to $51.1 million as revenue from property development for the quarter jumped five-fold to $161.7 million. This is mainly due to progressive recognition of sales income from the Sentosa Cove residential projects.

Ho Bee declared a dividend of 0.75 cents per share and a special dividend of 1.25 cents per share. This brings total dividend payment to 2.75 cents per share, including the interim dividend of 0.75 cents paid out last year.

However, revenue from the property investment division fell 84 per cent to $7.5 million in FY06 as most of the units of Changyuan apartments in Shanghai and one floor of office space in Suntec Tower 2 have been sold.

The group recorded a revaluation surplus of $9.7 million on its investment properties in the fourth quarter, arising from the increase in value for the two floors of office space at Suntec Tower 2 and the seven units of warehouse space in Kaki Bukit Warehouse Complex.

Residential projects Montview, Quinterra, The Berth by the Cove and The Berthside are completely sold while Coral Island, Vertis and The Coast at Sentosa Cove are at least 95 per cent sold. Orange Grove Residences is 72 per cent sold.

Executive director Ong Chong Hwa said that current projects are enough to keep the company busy for the next three years.