Ho Bee

Ho Bee: Ho Bee's 1Q14 net profit collapsed 92% y/y to $4.1m on a 72% deterioration in revenue to $17.1m due to the absence on revenue recognition for development projects. Meanwhile, rental income from the group’s investment properties rose 495% to $15.9m mainly contributed by rental income from industrial and commercial properties, The Metropolis in Singapore and Rose Court in London. Management cautioned that the residential property market in Singapore is still facing strong challenges. Over the next few years, the group expects rental income to contribute significantly to earnings. Net gearing doubled to 31%. At $2.31, Ho Bee trades at 33% discount to its NAV/share of $3.47.