http://www.businesstimes.com.sg/sub/...29540,00.html?
Published August 13, 2010
CDL reports 18% hike in Q2 earnings
Net income rises to $164.6m as economic recovery boosts demand for homes, office space
By UMA SHANKARI
CITY Developments Limited (CDL), Singapore's second-largest property company, posted an 18 per cent increase in second-quarter net profit as economic recovery boosted demand for its homes and office space.
Net income for the three months ended June 30 rose to $164.6 million from $140 million a year earlier.
Earnings per share rose to 17.4 cents from 14.7 cents.
The group's revenue climbed 20 per cent to $941.7 million from $787.1 million in Q2 2009.
Analysts said that the results were largely in line with expectations.
Including the Q1 net profit, net profit for the first six months of 2010 came to $304 million - up 36 per cent from $223.1 million in H1 2009.
'This is equivalent to 47 per cent of consensus estimates of $642 million and 49 per cent of our estimate of $623 million for the 2010 financial year,' wrote Citigroup analyst Wendy Koh in a note.
Revenue for the first half of 2010 rose 20 per cent to $1.7 billion from $1.4 billion a year ago as CDL sold a total of 773 units with a sales value of $950 million in H1 2010.
Year-to-date, the company has sold 934 units with sales value of $1.2 billion.
In comparison, in H1 2009, the group sold 537 units worth $665 million.
The group's property development segment was the lead performer, contributing more than 50 per cent to profit before tax for both Q2 and H1 in 2010.
The rental properties segment continued to be the second largest contributor for H1 2010 due to the gains recognised on the disposal of North Bridge Commercial Complex and The Office Chamber in Q1 and Q2 2010 respectively.
However, for Q2, the recovery of the hospitality market (particularly in Asia) pushed CDL's hotel operations into becoming the second in line in terms of profit contribution.
CDL has two new launches planned for Q3. The first is the 642-unit NV Residences at Pasir Ris.
The second project is the redevelopment of the existing Copthorne Orchid Hotel site along Dunearn Road, which the group is managing the marketing on behalf of its hotel arm Millennium & Copthorne Hotels (M&C), in which it has a 54 per cent interest.
The upcoming project on the site will have 150 units.
CDL shares gained 8 cents to close at $12 yesterday.