Fragrance Group

Fragrance Group: Company announced its FY12 results yesterday. For the full year, Turnover was 36% y/y, and earnings was 52% y/y. Final dividend for FY12 proposed at 0.125¢, lower than FY11 of 0.5¢. Indicative dividend yield for FY12 at 0.5%. Mgmt stated that buyers are generally cautious following the latest round of cooling measures, especially in the residential and industrial sector. While the measures may dampen the speculative element in the market, the demand from the genuine home buyers who intends to buy for own-stay or long term investment, is expected to remain stable given the low interest rate environment. The Group owns a diversified portfolio of development properties, including considerable size of commercial properties, a segment which is most appealing to investors currently. The following are the projects in the pipeline. a) Residential cum commercial development site at Pasir Panjang Road b) A luxurious sea front landed detached housing development at Wak Hassan Drive c) An industrial development at Sims Drive/Aljunied Road strategically located near MRT station