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Hiap Hoe Growing Sky High

HiapHoHiap Hoe Limited (SGX: 5JK), a regional real estate group with a diversified portfolio of hospitality, retail, commercial and residential buildings, saw its revenue almost double to S$81.1 million in third quarter of 2013 (3Q 2013) as compared to S$40.8 million seen in the previous year.

The surge was because of higher progressive revenue recognized on its projects of Signature at Lewis, Skyline 360O and Waterscape at Cavenagh.

There was a 149.8% jump in net profit to S$33.3 million for the quarter. The net profit rise is in tandem with the revenue rise.

On the balance sheet, as of 30th September 2013, the company has a total borrowing of S$167.1 million. In fact, Hiap Hoe issued the first tranche of fixed rate notes under the S$500 million multicurrency medium term note programme recently to support its growth going forward. The debt-to-equity ratio equates to 1.04. The cash balance stands at S$3.3 million.

Mr Teo Ho Beng, Hiap Hoe’s Executive Chairman and Chief Executive Officer said, “We are delighted to report that the quarter has turned out to be an exciting period in which we were able to deliver another quarter of steady results despite the prevailing weakness in the current Singapore market. The strategies that we have put in place to grow our business in new markets and other investment asset classes have begun to take shape and we expect these initiatives to continue to generate sustained value for our shareholders over the mid to long-term.”

The company said that since it expects the local property market to remain challenging in the short-term, it “will continue to step-up its marketing efforts to drive sales for its remaining unsold residential units.” Hiap Hoe also marched on with its regional expansion plans, acquiring three assets in Melbourne, Australia during the quarter.

Earlier last month, Hiap Hoe offered to buy up all the remaining shares of SuperBowl Holdings Limited (SGX: S48) at S$0.75 per share. Hiap Hoe sees a strategic and operational fit between the property development and investment business of itself and SuperBowl’s business in investments in commercial properties.

Hiap Hoe closed at S$0.815 on Monday and is trading at a historical PE of 6.6. The dividend yield is at 1.2%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.