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Singapore’s Big Loser of the Week: Chiwayland International Ltd

Credit: hobvias sudoneighm

Chiwayland International Ltd (SGX: ACW) saw its shares slump 20.3% this week to close at S$0.235. With the Straits Times Index  (SGX: ^STI) clearly moving in the opposite direction with a 1.5% gain, the firm is one of the biggest losers in the local share market for the week.

Chiwayland is involved in developing residential and commercial properties, office buildings, education hubs, and fixed price housing in China. According to its website, the firm is “one of the few established property developers that has a strong track record in developing educational institutions and education zones.”

Last week, the company announced that it will be conducting its Annual General Meeting (AGM) on 27 April 2015 for the fiscal year ended 31 December 2014.

For the year, Chiwayland saw its revenue soar 35% year-on-year to RMB2.2 billion. This was mainly on the back of an increase in the aggregate gross floor area sold and recognized from its Xuancheng Chiway Top Town as well as the Suzhou Hemei Garden and Hetai Garden projects. These projects made up around 94% of Chiwayland’s total revenue for the year.

The company’s net profit, however, tumbled 59% year-on-year to RMB47.8 million, mainly due to one-off non-operating expenses of RMB105.6 million. Without the one-off expenses, net profit would have gone up 30% to RM153.4 million.

The real estate company is also making inroads into Australia. In August last year, it started a joint venture in Brisbane to develop residential properties which also contained commercial space. Chiwayland also effectively won a tender for a land site in Sydney in the last quarter of 2014. To add on to the good news, earlier this year, Chiwayland started another joint venture in Sydney to “develop a separate plot of land into residential units.”

Mr. Qian Jianrong, Executive Chairman and Chief Executive Officer of Chiwayland, is optimistic about his company’s prospects in Australia. He commented:

“Our regional expansion plans are on track. We have made good progress in establishing a presence in Australia, with existing developments in the cities of Brisbane and Sydney. We remain focused on our long-term growth strategy and will continue to tap onto strategic opportunities to expand the business further, both locally and overseas.”

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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.