Ho BEE

Ho BEE: Reported 4Q10 and FY10 Results, broadly in-line with expectations. 4Q10 Rev at $112.1m, +13%YoY and +13.4%QoQ, while Net Profit at 115.6m, +168.3%YoY and +198%QoQ. Result places FY10 Rev at $538.9m, -53.5%YoY, while Net Profit at $308.3m, -8.5%YoY.....

Strong bottom-line performance, was contributed by the gains of $31.6m and $66.5m on the sale and fair value changes of investment properties, respectively. Turnover for Grp’s ppty devt in 4Q10 rose 13% to $104.1mYoY, as a result of the completion of The Orange Grove project in Dec...

However, turnover was lower YoY due to the exceptionally high recognition of rev in FY09 when five residential projects, namely Vertis, Quinterra, Orange Grove Residences, TheCoast and Paradise Island, were completed.....

For Ppty Investment segment, Group sold TG Building, Frontech Centre and four floors of office space at Samsung Hub, generating a net gain of $30.2m, durning the yr, as part of Grp’s strategy to rationalize its investment property portfolio, following the acquisition of 1.2m sqft of prime commercial development in One-North....

Going forward, grp tips recent anti-speculation measures introduced by govt to have more dampening impact on the vol of transactions and prices of private residential properties. Notwithstanding expected weakening of residential ppty sector, grp remains optimistic for FY11, where earnings are expected to remain positive with progressive recognition of income from sale of development projects in the previous and current yr...

At current price, valations are competlling, with grp trading at 0.66xPB, with Net Gearing at 45.7%. Grp has proposed a one-tier final div of 3c/ share. Inclusive of the 1c interim div paid out earlier in 2010, aggregate div for FY10 amounted to 4c/share. (3% div yield). CIMB Maintains OutPerform with $1.31 TP.