Ho Bee's full-year profit hits record $337m

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Published February 13, 2010

Ho Bee's full-year profit hits record $337m

Its Q4 gain of $43.1m is also a significant rise from $11.3m in the year-ago period

By KALPANA RASHIWALA


(Singapore)

PROPERTY group Ho Bee Investment achieved record net profit of $337 million for the year ended Dec 31, 2009 - a big jump from $93.1 million in the previous year. Its topline also vaulted to a fresh high of $1.16 billion last year - almost quadruple the $302.1 million revenue in the preceding year.

The strong showing was powered by higher recognition of revenue from property development, including five projects that received Temporary Occupation Permit (TOP) last year. That's when developers book a chunk of revenue and earnings from units sold in residential property developments.

For the fourth quarter ended Dec 31, 2009, Ho Bee posted net profit of $43.1 million, again a significant increase from the $11.3 million reported in the same year-ago period.

Next month, Ho Bee and IOI Land plan to launch Seascape, an eight-and-a-half-storey seafronting condominium at Sentosa cove. It will have a total 151 units, mostly three and four-bedders.

The three-bedroom units are between 2,200 sq ft and 2,400 sq ft while four-bedders are 2,700-4,000 sq ft.

Ho Bee expects to remain profitable this year. 'Revenues and earnings for FY2010 will be underpinned by progressive recognition of income from the residential projects previously sold and expected sales this year,' Ho Bee chairman and CEO Chua Thian Poh said.

He said the overall outlook for the Singapore property market remains positive and he expects demand for mid to high-end residential projects to remain resilient. The group is actively looking at property development opportunities overseas, especially in China, he added.

Ho Bee's full-year profit included a writedown of $29.5 million in fair-value changes of investment properties (mostly the group's stake in Samsung Hub) as well as writedowns for development properties totalling $57.6 million (largely for the Pinnacle Collection plot on Sentosa Cove).

Maiden recognition of revenue for Trilight, a condo at Newton Road which Ho Bee launched in Q4 last year, helped boost Q4 2009 revenue to $99.2 million from $38.5 million in Q4 2008. In addition to the higher turnover, a $21.7 million writeback on development properties previously written down in second quarter last year and a $1.9 million share of profit from joint venture entities against a $4.5 million share of loss in Q4 2008 also helped to provide a fillip to Ho Bee's fourth quarter bottomline.

Shareholders will receive a 2-cent per share final dividend, in addition to the interim dividend of the same quantum the group paid out earlier last year. These amounts are double the 2008 payout.

The five projects Ho Bee received TOP last year and which helped contribute to the $1.13 billion full-year turnover for property development were Vertis in the Amber Road area, Quinterra at Holland Road, Orange Grove Residences, The Coast and Paradise Island. The last two are on Sentosa Cove.

These projects' completion translated to strong cash collection; the group enjoyed a whopping $963.2 million net cash inflow from operating activities last year, and this enabled Ho Bee to repay bank loans and still manage to treble its coffers. It trimmed group borrowings from $1.15 billion at end-2008 to $409.5 million at end-2009 and lowered net gearing from 1.26 times to 0.20. Over the same period, cash and cash equivalents rose from $45.1 million to $171.7 million.

Net asset value per share increased from $1.20 at end-2008 to $1.63 at end-2009. On the stockmarket yesterday, Ho Bee closed one cent lower at $1.74.

http://www.straitstimes.com/Money/St...ry_490118.html

Feb 13, 2010

Ho Bee posts $43m quarterly gain

By Harsha Jethnani


HO BEE Investment has ridden the latest property wave to turn in a near quadrupling of fourth-quarter net profits to $43.1 million, from $11.3 million in the same period a year earlier.

The sterling quarter capped off a record-breaking financial year ended Dec 31, the company said.

One key factor boosting the bottom line was a $21.7 million hike in the valuation of development properties after they had been written down in the recession-hit second quarter.

Revenues shot up 157 per cent to $99.2 million from the same quarter a year earlier.

This was helped by income from new industrial properties which boosted property investment revenues by 27 per cent.

Quarterly earnings per share increased to 5.86 cents from 1.53 cents in the corresponding quarter in 2008.

Net asset value per share was $1.63 as of Dec 31 from $1.20 a year earlier.

Full-year profits of $337 million also soared, up from $93 million previously - as did full-year revenue which shot up to $1.16 billion from $302 million.

The dazzling set of figures was boosted by maiden recognition of sales from Trilight at Newton along with completed projects including Vertis, Quinterra, The Coast, Paradise Island and Orange Grove Residences.

With its positive outlook for the property market, the group will be launching Seascape, a joint-venture project with IOI Land, in Sentosa Cove by the end of the current quarter, said chief executive Chua Thian Poh.

The group will also be scouting for development opportunities in China this year, he said.

Full-year earnings per share were 45.8 cents last year, up from 12.6 cents.

Ho Bee has proposed a final dividend of two cents per share.

The group's share price closed a cent lower at $1.74, after the announcement of the results.