Property group Ho Bee Land posted group net profit of S$7.3 million for the third quarter ended Sept 30, down 76.7 per cent from a profit of S$31.5 million for the same period last year.

No sale this year yet.

In 2Q13, Ho Bee's revenue from property development dipped 97.7% y-y to S$3.3mn. For the six months ended 30 June 2013, revenue decreased 64.8% from S$174.7mn to S$61.4mn.

Lucas Tan of PhillipCapital said that this was due mainly to lower revenue recognition, as the bulk of One Pemimpin was recognized previously.

" Ho Bee did not record any residential sales for its Sentosa residential units and continues to have majority of their unsold inventory concentrated there," he said while noting that with the cooling measures instilled, demand for new units at Sentosa has dwindled.

As of Dec 31, 2012, Only 47% of Turquoise's 91 units were snapped up while only 28% of Seascape's 158 units were sold.

Ho Bee's Pinnacle Collection is not launched yet.

Backed by its stellar financial position, Tan said that it bodes well for Ho Bee to hold out, pending favorable sales timing for its unsold residential units.

" We expect weak local residential sales for the remaining of FY2013," he said.  ...last: $2.07...


 

SINGAPORE - CIMB Research raised its target price on property developer Ho Bee Investment Ltd to S$2.21 from S$1.93 and kept its 'outperform' rating, citing a possible upward revaluation of its assets.

Ho Bee shares were up 1.1 per cent at S$1.885, and have jumped 83.9 per cent since the start of the year, compared with a 36.6 per cent rise in the FTSE ST Financial index.

Ho Bee is trading at a 30 per cent discount to its book value, but CIMB noted that " the discount gap is attractive as its book value is set to rise next year," when its commercial property, the Metropolis is revalued.

" Demand for investment assets and quality office properties with large floor plates places Metropolis in good stead for a potential divestment in 2013," said CIMB.