Thursday 28 Mar 2024
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SINGAPORE (Aug 29): Developer GuocoLand more than doubled its FY16 earnings ended June to S$606.7 million, from S$226.4 million a year ago, on higher other income which increased by S$523.5 million, mainly due to a gain from the group’s disposal of subsidiaries relating to the Dongzhimen project.

Revenue dipped 9% to S$1.06 billion, from S$1.26 billion, mainly due to lower revenue recognised for Singapore and China. This was due to the absence of contribution from Goodwood Residence and Seasons Park, as these were substantially sold in the previous financial year.

In addition, the sale of the serviced apartments in Shanghai Guoson Centre was also completed in the previous financial year.

The fall in revenue and change in sales mix led to a 25% decrease in gross profit, as compared to the previous financial year.

In the fourth quarter, earnings came in 63% lower at S$39.8 million. Revenue decreased by 16% to S$214.5 million.

The board is proposing a first and final dividend of 5 Singaporean cents per share and a special of 4 Singaporean cents per share for FY16.

In its outlook, GuocoLand says new home prices in China continue to rise month-on-month in 55 out of 70 cities surveyed by the National Bureau of Statistics in June 2016. Prices in Shanghai rose 2.4% month-on-month and 33.7% year-on-year in June. Recent property cooling measures introduced in the larger cities have started to slow down the price increase in these cities.

Meanwhile, the property market outlook and sentiment in Malaysia continue to be cautious.

Shares of GuocoLand closed at S$1.90 on Monday.

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