GuocoLand (F17) H1 2023 earnings summary

Executive summary

• H1 FY2023 revenue rose 46% YoY to S$661.6m and gross profit increased 18% to S$165.8m, driven mainly by progressive recognition of Singapore residential sales.

• Profit from continuing operations increased 51% to S$81.5m; profit attributable to equity holders was S$59.0m, down 13% including the prior-year disposal gain, but up 11% excluding it.

• Results reflected continued residential sales and higher recurring property investment income; Guoco Midtown was expected to become fully operational in 2023.

Financial highlights

• Other income rose 45% to S$47.6m, including higher hedge fair-value and foreign-exchange gains; finance costs increased to S$60.7m from S$39.9m.

• Administrative expenses rose 22% to S$46.5m, mainly from Singapore residential sales and marketing costs; associate and JV losses increased S$6.8m, mainly from EcoWorld International.

• Basic and diluted EPS were 4.46 cents, down 15% from 5.22 cents; weighted average shares were unchanged at 1,109.8m.

Segment performance

• Property Development revenue rose 45% to S$550.4m, or 83% of total revenue, mainly on higher progressive recognition from Singapore residential projects.

• Property Investment revenue increased 25% to S$74.8m, or 11% of revenue, contributing 35% of gross profit; growth came from Guoco Tower and Guoco Changfeng City South Tower.

• Hotel investment revenue tripled to S$35.3m, mainly on improved operations at Sofitel Singapore City Centre as international travel recovered.

• Singapore revenue rose 53% to S$534.9m; development revenue increased 59% to S$468.2m, investment property revenue rose 20% to S$66.6m, and net profit eased 4% to S$78.4m.

• China revenue fell 15% to S$43.5m as Guoco Changfeng City sales declined, while net profit rose to S$12.0m; Malaysia revenue increased 15% to S$47.8m and net profit rose to S$4.3m. Others’ net loss narrowed to S$7.5m.