http://www.businesstimes.com.sg/arch...-flat-20140829

Published August 29, 2014

GuocoLand's Q4 profit soars; Sim Lian's full year flat

By anita gabriel

[email protected] @AnitaGabrielBT


PROPERTY companies GuocoLand and Sim Lian Group issued their latest financial report cards on Thursday with a similar prognosis - the slew of property curbs in Singapore has been taxing on the once-upon-a-time booming private residential space here for these builders.

GuocoLand earned a nearly six-fold jump in net profit to S$186.11 million from S$32.22 million a year ago, led mostly by gains from the sale of a subsidiary and fair value gains from investment properties. Earnings from completed developments by joint ventures in Malaysia also contributed its fair share in the better results.

Revenue jumped three-fold to S$492.89 million from S$168.56 million owing to units sold for Goodwood Residence in Singapore and Seasons Park in Tianjin China. The firm posted earnings per share of 16.55 Singapore cents for the quarter, significantly up from 2.82 Singapore cents a year ago. It has proposed a first and final dividend of five Singapore cents per share, unchanged from a year ago.

It reaffirmed the general industry view that it was operating in a challenging environment both in Singapore and China. Based on data from the Urban Redevelopment Authority, the private residential property index fell one per cent in the second quarter while prices of non-landed private residential properties fell across all market segments. In China, challenges abound on the back of sliding prices and transaction volumes in the residential space in large cities. However, GuocoLand was optimistic that China's residential property market would be able to hold up.

For the full year, GuocoLand's net profit rose over seven-fold to S$304.23 million from S$40.49 million on the back of an 85 per cent improvement in revenue to S$1.25 billoin.

Property and construction firm Sim Lian's net profit for the full year ended June was flat, rising merely 2 per cent to S$170.98 million from S$166.85 million a year ago.

Revenue fell 4 per cent to S$714.66 million from S$742.25 million, due to lower contribution from the property business where revenues fell 14 per cent to S$506.7 million due to less contribution from Waterview and several completed property development projects. This was, however, partially offset by improved revenue from Centrale 8 at Tampines and Parc Vera project and a 34 per cent rise in revenue from the construction business.

Earnings per share were marginally lower at 17 Singapore cents from 17.2 Singapore cents a year earlier. The firm proposed a first and final dividend of 4.6 Singapore cents, mirroring that of last year.

Citing a challenging market ahead due to the property cooling measures here, Sim Lian said it will seek strategic investments and build a stable recurring income to overcome the fluctuating showing from its property business.