Chuan Hup Holdings (C33) H2 2023 earnings summary

Executive summary

• FY2023 net profit rose to US$5.79m from US$1.98m, while revenue declined to US$4.91m as development projects shifted to joint ventures, with project results recognized through associates and joint ventures.

• Focus remained on property investments and development across Singapore, Australia and the Philippines, alongside expansion into student accommodation.

Financial highlights

• Revenue was US$4.914m vs US$15.731m; profit before tax US$6.281m vs US$2.260m; net profit US$5.787m vs US$1.980m.

• Profit growth reflected higher mark-to-market gains on investment securities and derivatives of US$4.73m, lower exchange losses of US$2.27m, and a US$1.32m improvement in associate/JV results.

• Operating cash flow was negative US$7.881m; cash and cash equivalents ended at US$42.684m vs US$69.898m, with the reduction driven mainly by the Jalan Selanting acquisition and higher development loans to associates and JVs.

• Other comprehensive loss was US$2.227m, mainly from US$2.163m of currency translation losses; total comprehensive income was US$3.560m.

Outlook and guidance

• Cautious investment approach amid macroeconomic uncertainty; working with Finbar and Siera Property Group to evaluate Australian development opportunities.

• Garden Towers had 134 units pre-sold and was expected to start construction toward end-2024; Tapestry construction began in August 2023, with 40 of 113 units pre-sold at FY-end.

• Two Queensland projects were expected to commence construction in FY2024; Pipis launched sales in August 2023, while Exhale had development approval.

• Final tax-exempt dividend of SGD 0.01 per share recommended for FY2023, totaling SGD 9.23m, subject to shareholder approval.