GuocoLand

GuocoLand: Announced a lackluster 3Q13 set of results, with revenue at $92.4m, -12% y/y and -61% q/q, while registering a net loss of $13.3m versus a net profit of $0.2m y/y and $14.1m q/q. Result brings 9M13 revenue to $508.9m, +42% and 9M13 net profit to $8.3m vs a net loss of $0.2m. For 9M13, stronger sales were mainly due to higher revenue recognized from the group’s Singapore residential projects, although gross profit fell by 21% as a result of additional construction costs associated with its Goodwood Residence and Sophia Residence projects, as the estimated completion cost for the two projects increased due to changes in the projects' main contractors. Bottom-line was partly boosted by a $40.7m in other income, due largely to fair value gains recognized from the group’s investment properties, after independent valuations were carried out on its investment properties. Going forward, GuocoLand note that business environment in its key markets continues to be challenging. In Singapore note that sentiment for luxury residential properties remains cautious after the seventh round of property cooling measures, while in China, policymakers may be prompted to further tighten property policies as property prices still remains firm. Separately, the group unveiled details of its first integrated mixed-use development at the site above Tanjong Pagar MRT station. Named Tanjong Pagar Centre, the 290 metre development will be Singapore’s tallest building and is slated for completion in 2016. The building will be anchored by a soaring tower housing premium office, retail and residential homes, linked to a luxury business hotel, with floor space totalling 1.7m sf. At current price, GuocoLand trades at 1.08x P/B.