http://www.businesstimes.com.sg/arch...gains-20130501

Published May 01, 2013

Ho Bee Q1 profit more than trebles on disposal gains

By jasmine ng


HO BEE earnings more than trebled in the first three months of this year as the property group received $47 million from the disposal of Chongbang Holdings.

Profit from continuing operations quadrupled to $65 million, compared with $14.5 million in the year-ago quarter.

After accounting for non-controlling interests and profit from the discontinued hotel operation, Ho Bee yesterday said its net profit attributable to shareholders climbed to $52.1 million from last year's $15.8 million.

Sales jumped 68.4 per cent to $60.8 million on higher revenue recognition from property development.

Revenue from the group's property development arm came in at $58.1 million, an increase of 75 per cent over the corresponding quarter last year. This was due to the higher revenue recognition for residential project Trilight and industrial project One Pemimpin.

Turnover on property investment for Q1 amounted to $2.7 million, which was 8 per cent lower than last year.

The group's Metropolis commercial project at One North is expected to be completed by the end of Q3 this year. "To date, more than 60 per cent of the 1.08 million net lettable space has been pre-committed," Ho Bee said.

On a per-share basis, the company earned 7.7 cents in Q1, up from 2.2 cents the year before.

Total shareholders' fund as at March 31 was $1.82 billion. This works out to a net asset value of $2.69 per share.

Looking ahead, Ho Bee said 2013 will be a "challenging year" as government measures for residential and commercial properties are expected to have a negative impact on the real estate sector.

"Notwithstanding the uncertain property market, the group expects its earnings for 2013 to be positive," said Chua Thian Poh, the group's chairman and chief executive. He added that the group will seek opportunities overseas.

Ho Bee shares closed five cents higher at $2.15 yesterday.