Hong Fok

Hong Fok: 2Q13 net profit ballooned 264% to $13.5m while revenue accelerated 135% to $71.1m. This was mainly attributed to the higher recognition of revenue for Concourse Skyline. Going forward, Hong Fok will continue to recognize revenue from its Concourse Skyline project based on the percentage of completion, while its office rental revenue will remain stable. Further, the group expects to see an increase in its property valuation within 12 months, after the redevelopment of International Building which involves an extension of a single storey commercial block. Separately, the redevelopment of a car park block into a new 27 storey hotel at 360 Orchard Rd. Net gearing increased to 0.5x from 0.43x; Hong Fok currently trades at 0.45x P/B.