Hiap Hoe H1 Net Up 75% to $8m

Source : The Business Times, August 8, 2007

Earnings per share rose to 3.14 cents, from 2.05 cents a year ago

NICHE property developer Hiap Hoe yesterday said that net profit for the first half ended June 30, 2007, rose 74.8 per cent to $8 million - from $4.6 million a year ago - boosted by the company's property sales.


The profit figure for H1 2006 took into account a non-recurring gain of $3.9 million, the developer said. Excluding this gain, profit for the first six months of 2007 registered an 11-fold increase over the previous year.

Earnings per share rose to 3.14 cents, from 2.05 cents a year ago.

Hiap Hoe attributed the good showing to strong property sales as well as higher selling prices.

The company's first half revenue rose 261.2 per cent to $55.6 million, from $15.4 million for the corresponding six months last year. The six-month revenue already surpasses the full-year 2006 revenue of $50.6 million.

'The group has performed well due to strong market demand for residential property,' Hiap Hoe said.

Official data shows that private home prices have climbed 13.5 per cent since the start of the year.

Revenue contribution from Hiap Hoe's residential projects Papillon, Moonstone Residences, Proximo and City Edge totalled $55.2 million in the first half, the developer said.

Proceeds from the brisk sales of Cuscaden Royale and Oxford Suites - which were snapped up within a short period after their respective launches in the first half of the year - have yet to be recognised as construction has not started for both projects.

The company has more projects lined up going forward. 'With the Singapore economy expected to remain buoyant, the group is planning to launch its development project in Bukit Timah in the fourth quarter of 2007,' it said.

'Other possible launches in the first half of 2008 include developments at St Thomas Walk, Cavenagh Road and Toh Tuck Road.'

As the uptrend in residential property prices is now spreading beyond the prime districts, Hiap Hoe is seeking out 'promising sites' for future development.

The company's stock closed two cents down at 92.5 cents yesterday.