Hiap Hoe (5JK) H1 2024 earnings summary

Executive summary

• 1H 2024 net profit rose to $1.0m from $0.5m, supported by a $20.78m gain on the Four Points by Sheraton Melbourne Docklands disposal and higher investment fair-value gains.

• Revenue fell to $58.7m from $65.1m, mainly on lower hotel contributions; higher finance costs and income tax partly offset gains.

Financial highlights

• Revenue was $58.7m versus $65.1m; profit before tax was $11.6m versus $1.7m; net profit was $1.0m versus $0.5m.

• Other income increased to $24.4m from $16.4m, including the $20.78m disposal gain; fair-value gains in financial instruments were $6.4m versus $1.2m.

• Finance costs rose to $19.8m from $17.9m as borrowings increased; income tax expense was $10.6m versus $1.2m, mainly reflecting the disposal gain.

• Operating cash flow was $12.6m versus $20.0m; investing cash flow was $26.5m versus $11.5m, including Four Points disposal proceeds.

Outlook and guidance

• Priorities are to improve rental yields and occupancy, build recurring income, and accelerate the Aloft Singapore hotel ramp-up; overseas hotels are expected to contribute positively.

• Investment portfolios remain exposed to market volatility; near-term liquidity and banking facilities are considered sufficient, with prudence on non-essential spending.