WEAKER Q4 RESULTS FOR HIAP HOE, HEETON

Singapore-listed property firms Hiap Hoe and Heeton Holdings posted weaker Q4 results last week, signalling caution over the Singapore property market.

Singapore-listed property firms Hiap Hoe and Heeton Holdings posted weaker Q4 results last week, signalling caution over the Singapore property market.

Hiap Hoe saw its net profit drop 48 percent in Q4 2013 to S$7.17 million from the previous year, primarily due to higher expenses. The company's earnings per share stood at 1.52 cents, down from the previous year's 2.93 cents.

Notably, Hiap Hoe's administrative expense during the quarter soared from S$1.8 million to S$15 million, on the back of acquisition costs from snapping up properties in Melbourne, Australia.

The decline in profit came amid a strong surge in revenue, which saw sales for the quarter jump from S$24.4 million to S$49 million.

Buoyed by stronger revenue, the company's full year earnings climbed 38.2 percent to S$80 million.

Meanwhile, Heeton Holdings saw its net profit drop 85 percent to S$1.6 million in Q4 2013, while revenue plunged 44 percent to S$13.2 million. The earnings translated to an earnings per share of 2.26 cents.

On an annual basis, the group's net profit fell 65 percent to S$18.4 million.

Moving forward, Hiap Hoe expects Singapore's property market to remain soft, while Heeton said it will "monitor the market" for the right time to launch its projects in Singapore.

Both firms indicated plans to seek out overseas expansion opportunities.

Nikki De Guzman, Junior Journalist at PropertyGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg.

Source: CommericalGuru.com.sg

Date Post: 25/2/2014
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