Second Chance Properties is flagging that it will report FY2023 earnings that will be higher "significantly" compared to the preceding FY2022's $14.2 million.
Second Chance Properties attributes the better earnings to higher dividend received from its portfolio of stocks held. Gain on disposal of investment properties helped lift the bottom line too.
In addition, there is a realised gain of $5.424 million upon cash acquisition as well as disposal of a few equity instruments held by the group and classified as financial assets, at fair value through other comprehensive income. This gain will be taken directly to equity through retained earnings.
The company will report its numbers for the year ended Aug 31 on Oct 30.
Despite the name, Second Chance Properties ' focus has in recent years shifted from rental income to stock investments.
This marks the company's latest transformation under founder and CEO Mohamed Salleh Marican (picture), who started the company as a tailor.
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In its most recent quarterly portfolio update, Second Chance Properties says that its the fair value of its securities for the quarter ended May 2023 has reached $283 million, vs $255 million for the preceding quarter ended Feb 2023.
As of May 31, its five largest counters held are China Mobile, Citic, China Citic Bank, China Unicom (Hong Kong) and Agricultural Bank of China.
Based on the company's Oct 20 closing price of 24 cents, it is trading at a historical PE of 9.86x and yield of 4.26%.
