Real estate and property developer Hong Lai Huat has reported a turnaround to profitability with earnings of $3.2 million for its FY2021 ended December 2021, compared to a full year loss of $8.5 million in FY2020.
Revenue for FY2021 more than doubled from a year ago, rising from $7.2 million to $16.7 million. Gross profit margin also rose from 38% to 62%.
This was due to stronger property sales in Cambodia, and Other income also rose mainly due to a forfeiture of progressive deposits from property sales, gain on disposal of property, plant and equipment, and rental income.
However, Hong Lai Huat also disposed of its interest in HLH Agri R&D Pte Ltd., recording a loss from discontinued operations of S$2.8 million.
In light of the results, the company has declared a dividend of 0.2 cent per share, representing a payout ratio of about 32% from its net profit.
In its outlook, Hong Lai Huat has seen an improvement in sales of properties at both D’Seaview and Royal Platinum in Cambodia after the reopening of the borders restrictions.
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It will continue to market the balance units to potential buyers in the year ahead. Hong Lai Huat added, D’Seaview, has continued to see a “progressive takeover of sold units” by foreign buyers, while construction for Royal Platinum has reached level 10 as at the end of 2021.
The company also updated that its third and fourth property development project are currently under designing and feasibility stages, and it will update shareholders once the projects are ready to be launched in the market.
Hong Lai Huat group executive deputy chairman and group CEO Johnny Ong says “With contributions from existing projects and a strong pipeline of developments, we are confident of the Group’s long-term outlook. Cambodia is one of the fastest growing countries in the region with a growing middle-income population, and as one of the budding property developers in the country, we believe the best is yet to come.”
Shares of Hong Lai Huat closed at 9.5 cent on Feb 28, up 0.1 cent or 1.06% higher than its previous close.
