GuocoLand: Got off to an impressive start for FY16, with first quarter net profit of $550.5m (1QFY15: $27m), while revenue gained 97% y/y to $439.8m.
The top line growth came from higher sales at Leedon Residence in Singapore and profit recognition for a 33,297 sqm gfa office block in Shanghai Guoson Centre.
From the change in sales mix, gross margin improved to 32.7% (+2.8ppt).
Meanwhile, the bottom line was boosted significantly by a $480m disposal gain from the sale of Beijing's Dongzhimen project in Aug '15.
From the sale proceeds of the integrated development in China, GuocoLand pared down its debt and net gearing improved drastically from 157% in Jun '15 to 65%.
On the outlook, GuocoLand's key operating markets- Singapore, Malaysia and China, continues to remain challenging, mainly on the government cooling measures, jittery economic sentiments and oversupply.
At the current price, GuocoLand is trading at a 37% discount to its NAV of $3.03/share.
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