Juluca project propels Heeton's 63% profit surge for 9M

The niche property developer Heeton Holdings has posted a net profit of $16.9 million for the nine months on revenue of $32.7 million, compared with net profit of $10.3 million on revenue of $41.9 million a year ago. This takes into account a $4.7 million profit contribution during the nine months from the divestment of wet markets operations in 1Q10. Excluding this item, the increase innet profit from continuing operations was 25.1%.

Driven by revenue recognition of Juluca, a residential development project which achieved TOP status in 3Q2010, revenue for the quarter jumped 50% to $15.6 million, from $10.4 million a year ago. On the back of the strong revenue performance, the company achieved a healthy 25.1% growth in net profit to $4 million, from $3.1 million a year ago.

Mr Danny Low, COO of Heeton said, “We are encouraged by our consistent performance forthe year to date. The strong bottomline growth was achieved amidst a slight decline in revenue and was made possible by the recognition of sales from the Group’s residentialdevelopments, Juluca and The Lumos, as well as a gain in fair value of our investment properties.”

The Group ended the quarter with net asset value per share standing at 91.32 cents, up 13%from 80.8 cents as at 31 December 2009. Cash and cash equivalents also rose to $5.3 million from $0.3 million.

Heeton has appointed a British architect for its 3,700m2 joint-venture project located at theformer Mitre Hotel site along Killiney Road. It hopes to launch the project with a proposed 130 residential units in 1H2011.

Going forward, it will continue to monitor the market closely in order to maximize returns fromits current portfolio of investment and development properties, and where opportunities arise, make land purchases to replenish its land bank. The Group expects to remain profitable for FY2010.