Ho Bee's Profit In Q2 Jumps Five-Fold To $125.1m

Source : The Business Times, August 14, 2007

PROPERTY developer Ho Bee Investment's net profit for its second quarter surged five-fold to $125.1 million - boosted by a $71 million fair-value gain from its investment properties.

Mr Chua: Earnings for next two quarters will be underpinned by progressive income recognition from projects

The net earnings for the three months ended June 30 compare with $24.4 million for the corresponding period last year.

Turnover for the three months rose 31.5 per cent to $160.0 million, from $121.7 million a year ago as the developer recognised income from sales at three of its high-end residential projects - Orange Grove Residences, The Coast and Paradise Island at Sentosa Cove. Q2 earnings per share rose to 17.0 cents, from 3.4 cents a year ago. Ho Bee announced an interim dividend of 1.0 cent per share. With this payout, the company would have fully utilised its Section 44A tax credits that will expire in December this year, it said.

Related links:

Ho Bee Investment's press release
http://tinyurl.com/yu4tbb

Financial statement
http://tinyurl.com/2gfn9l

Other corporate results reported on Aug 13
http://tinyurl.com/23nenl

Consolidated corporate results table
http://tinyurl.com/237ges

For the first six months of 2007, Ho Bee's net profit rose 416.7 per cent to $194.2 million. Turnover for the company's first half climbed 132.6 per cent to $405.8 million.

Chua Thian Poh, chief executive of Ho Bee, expects earnings and revenue for the next two quarters to be underpinned by progressive income recognition from residential projects the company has launched.

To date, five of the group's seven projects under development are 100 per cent sold. The remaining two, Paradise Island and Orange Grove Residences, are 96 per cent and 95 per cent sold respectively.

Ho Bee also expects good take-up rates for the residential projects it intends to launch over the next 12 months in the core central region. The developer could launch another 648 units within the next year - the 91-unit Waterfront Collection and the 151-unit Seaview Collection (jointly with IOI Land) projects at Sentosa Cove, the 72-unit condominium at Orange Grove Road, the 150-unit condominium at Newton Road and the 184-unit condominium at Holland Hill (jointly with MCL Land), it said.

Ho Bee's shares closed unchanged at $1.85 yesterday. The stock has climbed some 27.6 per cent since the start of the year