Fragrance grp

Fragrance grp: Announced 2Q11 results, with a record turnover at $83.6m, +39% yoy and +61.3% qoq, while net profit at $23.8m, +41.4% yoy and -40% qoq (fall in qoq largely due to other gains derviced on disposal of property at beach report during 1Q11)

Strong show led by property sector contributing $70.3m or 84.1% of total revenue, +42.7% yoy, due to the progressive recognition of income from development projects namely,Prestige Heights, Parc Elegance and Kovan Grandeur. Other projects that made significant revenue contribution included Suites & Icon @ Changi, Suites @ Eastcoast and the landed houses at Upper Changi Road North.

Hotel sector contributed the remaining 15.9% of turnover, which saw an increase of 21.9% yoy mainly attributed to the additional rev contributed by one new hotel commenced this yr and another hotel which commenced operations last year. Increase also due to improved occupancy and room rates achieved at most of grp’s hotels as a result of the increase in visitors arrival to SG.
At current price, valuations appear steep, grp trading at 4.5x P/B vs historical average of 2.5x and peers simple average of 2.4x P/B.