SC Global

SC Global: Announced a strong 4Q10 and FY10 results, with Rev for 4Q10 at $228.3m,
-17%YoY but +19.2%QoQ, wile Net Profit at $72.5m, +105%YoY and +117%QoQ. Result brings FY10 Rev to $878.2m, +9%YoY and Net Profit at $163.5m, +187%YoY, registering a CAGR Net Profit of 73% over the last 5 yrs....

Strong Rev included contributions from progressive rev recognition of the Grp’s development projects, including The Marq on Paterson Hill, Hilltops and Martin No. 38 based on progress of construction, as well as its development projects in Shenyang, China and the Group’s subsidiary in Australia, AVJennings....

Construction of Grp’s development project, Seven Palms, Sentosa Cove also progressed to the stage where its maiden rev recognition was included in 4Q. In addition, rev was also recognized from the sale of a Super Penthouse unit at The Boulevard Residence. Gross Margins also increased during the yr, wth FY10 Gross Margins at 35%, vs 24% YoY, due to improved margins in Grp’s operations, particularly in Aus.....

Going forward, grp remains confident on prospects, noting that targeted client profile which grp’s target, are generally more genuine buyers, who are more insulated towards the Govt’s recent property measures, and will focus on the execution and delivery of its projects. Grp currently holds a valuable landbank of over 1.1 mil sqft in the prime areas of Orchard Road and Sentosa Cove, with a strong operational presence through subsidiaries in China and Australia....

Balance sheet remains fairly stable, with gearing ratio (total debt/total assets) improving to 58% vs 65% YoY, while at current price, valuations appear compelling, with grp trading at 0.85x P/B. Grp has proposed a div of 5c/share for FY10, (Comprising a first and final dividend of 2c and a special div of 3c/share), placing Div yield at 3.8%.