GuocoLand reports fiscal 1Q net profit climbed 61 percent

GuocoLand, HSBC and Bank of China buildings at dusk in Singapore; taken August 2018.GuocoLand, HSBC and Bank of China buildings at dusk in Singapore; taken August 2018.

GuocoLand reported Thursday its fiscal first quarter net profit climbed 61 percent on-year to S$42.10 million, mainly on higher progressive sales recognition from the Martin Modern project.

Revenue for the quarter ended 30 September increased 62 percent on-year to S$272.52 million, the property developer said in a filing to SGX.

GuocoLand’s share of profit of associates and joint ventures, net of tax, dropped 55 percent on-year to S$6.04 million on a lower share of profit from the Shanghai joint venture and a share of losses from a joint venture in Singapore, the filing said.

The Singapore joint venture has incurred costs for a development project with having any revenue recognized in the quarter, the filing said.

Other income fell 39 percent on-year to S$7.17 million, mainly on a net foreign-exchange gain in the year-ago quarter, the filing said.

Tax expense increased 179 percent on-year in the quarter to S$11.06 million in line with higher revenue, the filing said.

In its outlook, GuocoLand pointed to estimates from the Urban Redevelopment Authority in Singapore showing private residential property prices increased 0.9 percent in the third quarter of the year, rising for a second straight quarter, albeit below the 1.5 percent rise in the previous quarter.

In China, Chongqing new home prices rose 0.5 percent on-month and 9.7 percent on-year in September, GuocoLand said, citing official data.

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