Ho Bee posts 39% drop in full-year profit

Ho Bee Investment’s 2011 net profit slumped 39 percent to S$202.5 million compared to the previous year.

The Singapore-listed property firm said revenue fell 43 percent to S$341.5 million for the 12 months to 31 December from a restated S$600.3 the previous year.

It attributed the decline to “the higher revenue recognition on the completion of residential projects, Turquoise at Sentosa Cove and The Orange Grove at Orange Grove Road, in 2010”.

Revenue from its property development business decreased 44 percent to S$316.3 million, while property investment revenue fell 32 percent to S$17.1 million after the company sold TG Building in the second half of 2010 and Platinum 28 and the office space at Samsung Hub in 2011.

Ho Bee’s hotel operations posted an increase in sales due to higher average room occupancy rates, with the full-year revenue contribution rising 16 percent to S$8.1 million.

Earnings per share for the year fell to 28 cents from 45 cents in 2010.

According to the group, the Additional Buyers’ Stamp Duty on the private residential properties – effective from 8 December 2011 – will have an impact on the Group’s residential projects.

However, Chua Thian Poh, chairman and CEO of Ho Bee, said “the Group’s earnings for 2012 will continue to be positive with the expected completion of industrial project, One Pemimpin, and residential projects, Parvis and Trilight.”

The company has declared a final cash dividend of 4 Singapore cents for FY11.

The results announcement came after the close of trading on the Singapore Exchange.

Ho Bee’s shares fell for a fourth straight day on Tuesday, ending 0.4 percent lower at S$1.315.

Source : Channel NewsAsia – 28 Feb 2012

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