Property developer Ho Bee Investment reported a net profit of $41.7 million for the first quarter ended 31 March 2010, up 11.8 percent compared with the same period in 2009.
The increase from $1.9 million to $10.8 million was mainly attributed to a surge in share of profit of jointly controlled entities, of which the joint-venture project Parvis at Holland Hill was the main contributor.
Group turnover for Q1 2010 dropped 16.1 percent year on year to $92.4 million –primarily due to lower recognition of revenue from property development.
Ho Bee enjoyed higher revenue recognition in Q1 2009, as two projects, Quinterra and Vertis, obtained Temporary Occupation Permit in that period.
According to Chua Thian Poh, chairman and CEO of Ho Bee, the group has benefited from the robust property market sentiment and economic recovery.
“Our residential projects, Trilight, located at Newton Road, and the JV project with MCL Land, Parvis, at Holland Hill, have sold very well. The progressive recognition of income from the residential projects sold will be a significant contributor to the group’s profitability for 2010,” he said.
In Q1 2010, Ho Bee sold 198 residential units in various projects – Parvis, Trilight, Orange Grove Residences, Dakota Residences, Seascape and The Orange Grove. As at end-March 2010, about 17 percent of the group’s 151-unit Seascape condominium at Sentosa Cove changed hands, although this has since improved to 21 percent.
Cash and cash equivalents contracted to $52.4 million at end-March 2010 from $171.7 million at end-Dec 2009, as the developer put a deposit for its share for the acquisition of a prime residential site in Shanghai’s Qingpu district and repaid term loans of $104.7 million. Ho Bee has teamed up with Yanlord Land Group for the acquisition.
Ho Bee posted earnings per share of 5.66 cents in Q1 2010, up from 5.07 cents over the same period in 2009. Net asset value per share also increased to $1.68 at end-March 2010 from $1.63 at end-Dec 2009.
On the stock market yesterday, the counter closed two cents higher at $1.66.