Research house Religare says GuocoLand's 4Q and full-year results came within its expectations.
“Looking ahead, we expect investors to pay little attention to its results as the company’s geographical exposure is in cities facing strong macro headwinds in Singapore (residential and office), China, and Malaysia,” says Religare in a note which is maintaining its 'avoid' recommendation.
GuocoLand last night reported a 42% fall in earnings for its 4Q to $107.31 million, dragged by lower revenue and fair value gain on investment properties.
Revenue slumped 48% to $254.7 million during the quarter, dragged down by lower revenue recognition from China projects such as Seasons Park in Tianjin was almost fully sold in the company’s financial year.
For the full year, Guocoland’s revenue fell 7% to $1.16 billion while earnings fell by 26% to $226.35 million.
A 5 cents dividend has been declared, giving a yield of 2.5%, while the stock is trading at just 0.7 times NAV.
However, to other analysts, the most interesting aspect to GuocoLand was the sale of its troubled Dongzhimen investment in Beijing for a gain of $460 million.
According to UOB Kay Hian, the sale added about 10.5 cents to its revalued net asset value estimate, boosting it to $3.40.
UOB Kay Hian likes GuocoLand.
The stock is up 0.5% at $1.995 at 9.51am.
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“Looking ahead, we expect investors to pay little attention to its results as the company’s geographical exposure is in cities facing strong macro headwinds in Singapore (residential and office), China, and Malaysia,” says Religare in a note which is maintaining its 'avoid' recommendation.
GuocoLand last night reported a 42% fall in earnings for its 4Q to $107.31 million, dragged by lower revenue and fair value gain on investment properties.
Revenue slumped 48% to $254.7 million during the quarter, dragged down by lower revenue recognition from China projects such as Seasons Park in Tianjin was almost fully sold in the company’s financial year.
For the full year, Guocoland’s revenue fell 7% to $1.16 billion while earnings fell by 26% to $226.35 million.
A 5 cents dividend has been declared, giving a yield of 2.5%, while the stock is trading at just 0.7 times NAV.
However, to other analysts, the most interesting aspect to GuocoLand was the sale of its troubled Dongzhimen investment in Beijing for a gain of $460 million.
According to UOB Kay Hian, the sale added about 10.5 cents to its revalued net asset value estimate, boosting it to $3.40.
UOB Kay Hian likes GuocoLand.
The stock is up 0.5% at $1.995 at 9.51am.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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