GuocoLand H1 profit rises 195% to S$67.5m

Jan 27, 2022

PROPERTY developer GuocoLand GuocoLand: F17 -0.67% posted a 195 per cent rise in net profit to S$67.5 million for its first half ended Dec 31, 2021, from S$22.9 million a year ago.

This was on the back of stronger revenue growth as the company saw broad-based growth across all its business segments, the property developer said in a bourse filing on Thursday (Jan 27).

Earnings per share stood at 5.22 Singapore cents for the half-year period, up from 1.2 cents a year ago.

Revenue for H1 rose 42 per cent to S$452.7 million, from S$319.6 million a year ago, mainly driven by the higher progressive recognition of sales from the group's residential developments in Singapore, as well as higher sales contribution from China.

The developments include Meyer Mansion, Midtown Bay and Midtown Modern – which saw “very strong sales results” when they were launched in March 2021 – as well as Martin Modern, launched in May.

No dividend was declared for the half year, unchanged from a year ago.

GuocoLand noted that its investment properties continued to contribute a stable base of recurring income, with growth in revenue predominantly from its flagship integrated mixed-use development Guoco Tower. Its residential developments in Singapore also delivered strong sales.

Meanwhile, in China, sales were modest as buyers turned more cautious and selective in home purchases.

As for Malaysia, while it has been impacted by multiple Movement Control Orders since the pandemic, sales of GuocoLand’s residential projects were resilient, and its ancillary hotel business in Malaysia had benefited from the gradual relaxation of travel restrictions.

The group also had a one-off profit of S$14.3 million from the disposal of its Vietnam subsidiaries recorded during the period.

Shares of GuocoLand closed at S$1.50 on Wednesday, up S$0.02 or 1.4 per cent.