Hiap Hoe second-quarter net profit jumps 74.1% to S$29 million

Revenue has risen 87% to S$80.3m.

Singapore Mainboard-listed premium property developer Hiap Hoe Limited (Hiap Hoe) also announced a 75.9% jump in net profit attributable to shareholders to S$29.3 million for the three months ended 30 June 2013 (2Q2013).

"In view of the Group’s sterling performance and to reward shareholders for their loyal support, the Board is pleased to declare a record high interim cash dividend payout of 1.2 Singapore cents per share, equivalent to 14.3% of the Group’s net profit attributable to shareholders for 1H2013," Hiap Hoe said.

Commenting on the Group’s strong performance, Mr Teo Ho Beng, Hiap Hoe’s Executive Chairman and Chief Executive Officer said, “I am delighted that the Group has performed exceptionally well at a time when the industry is facing challenges arising from slower economic growth and ongoing efforts by the authorities to stabilise Singapore’s property market. Our strong performance is underpinned by Hiap Hoe’s reputation as a premium property developer and our continual success in bringing to the market distinctive projects that are located in excellent locations.”

The Group’s 2Q2013 revenue grew 87.0% to S$80.3 million, from S$43.0 million in the previous corresponding financial period (2Q2012) primarily due to higher progressive revenue recognition from Waterscape at Cavenagh and sales of units from Signature at Lewis and Skyline 360° amounting to S$73.2 million (2Q2012: S$30.8 million).

Backed by the higher revenue and higher margin contribution from the Group’s ongoing projects, gross profit more than doubled to S$38.3 million for 2Q2013, compared to S$16.4 million for 2Q2012. Correspondingly, gross profit margin improved 9.5 percentage points to 47.7% for 2Q2013, from 38.2% for 2Q2012. Earnings per share rose to 6.24 Singapore cents for 2Q2013, from 3.54 Singapore cents for the corresponding period, while net asset value per share as at 30 June 2013 rose to 72.84 Singapore cents, from 64.94 Singapore cents as at 31 December 2012.

For the half year ended 30 June, 2013 (1H2013), the Group achieved a net profit after tax of S$38.8 million, on a 37.6% improvement in revenue to S$110.6 million, from S$80.4 million for the corresponding financial period (1H2012). The Group ended the period in a stronger position with shareholders’ equity of S$341.8 million as at 30 June 2013 from S$305.3 million as at 31 December 2012.

The Group remains well-positioned with S$21.3 million in cash and short-term deposits and a healthy gearing ratio of 0.4 times as at 30 June 2013.