Thursday, May 11, 2006

Stock Earnings: Capitaland Q1 net profit jumped 86.5 %!

CapitaLand said its first quarter net profit jumped 86.50 pct year-on-year to 130.60 mln sgd, bolstered by exceptional gains. CapitaLand booked a gain of 58.30 mln sgd during the quarter, primarily from the sale of its stake in Shanghai Xin Mao Property Development Co. The company said operating sales slipped 10.50 pct year-on-year to 658.65 mln sgd in the first quarter due to lower contributions from China and Australia. Overseas contributions accounted for 52 pct of the group's sales in the first quarter. "The lower revenue from China was due to the slowdown in residential property sales," CapitaLand said. "The deconsolidation of assets divested in 2005, such as Pidemco Tower in Shanghai and Four Seasons Hotel in London also contributed to the (sales) decline," it said. Notwithstanding the softening contributions from China, which had been a major growth driver for the group, company officials remain upbeat. "The group performed well in the first quarter and continues to see strong long-term growth trends in Asia, underpinned by concurrent high growth in China, India and a recovering Japan," CapitaLand chairman Richard Hu said in a statement. CapitaLand group CEO Liew Mun Leong said the group is on track to launch property funds in China and other Asian countries. "We announced that we would take a significan stake in a Hong Kong-listed property company to scale up our presence in China. We are also on track to launch new property funds in China and other Asian countries," Liew said.

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