by winston » Tue May 26, 2015 10:22 am
vested
Stamford Land ($0.59, down 0.5 cent) posted 4Q FY15 net profit of $5.4 mln (+87.5% yoy) underpinned by 80% jump in revenue to $112 mln, lifting full year to Mar’15 sales and profit by 10% to $307mln and $30mln respectively.
Revenue for property development segment was significantly higher due to the disposal of DH site. Relatie to the previous FY, TSRA and TSRRT registered lower sales.
Trading segment revenue also declined in FY15 to $0.5 mln with lower contributions coming from the group’s interior decoration business in the face of intense competition.
Meanwhile, 4Q FY15 revenue for hotel segment was lower, mainly attribbuted to the closure of Stamford Grand North Ryde (SGNR) which made way for the development of Macquarie Park Village (MPV) and a significant decline in AUD of 7.5% QoQ.
Despite the closure of SGNR, we note that it still registered better YTD performances from hotels.
A weaker AUD (which depreciated 3.9% during the year) resulted in overall lower contribution.
For FY15, operating profit for the group’s property development segment improved due to contribution of sale of DH site and higher selling prices achieved for TSRA. Property investment segment registered stable operating profit, with higher rental income off set by weaker AUD.
The closure of SGNR, coupled with a lower AUD, resulted in an overall decline in Q4/YTD operating profit for the hotel segment.
Trading segment registered lower contributions from the Group’s interior decorations business.
Under “Others” segment, higher donations and legal/professional costs incurred resulted in lower operating profit.
Despite a challenging year and a weaker AUD, the Group’s operating profit increased by 31.9% on the back of an increased turnover of $307mln.
The total hotel segment’s revenue is expected to decline due to the closure of SGNR. This, however, will be made up by the expected increase in room rates as room refurbishment program progressively completes. In addition, the introduction of 2 more La Boca F&B outlets is expected to augment revenue.
Construction at MPV commenced in 1Q2015 and is expected to complete in 2017 / 2018. Management expects better performance from the sale of its remaining TSRRT and TSRA units (currently valued at around A$60m) in FY2016.
Dynon’s Plaza, Perth continues to post stable results, underpinned by a fixed lease income of over A$11m per annum until 2020. As such, management expects the group’s outlook to remain positive for the coming year.
Financial position remains strong with cash of $145mln and shareholders’ funds of $459mln against interest bearing debts of $307mln. Gross gearing is 0.67x while net gearing is 0.35x.
Management maintained final and special dividends at 2 cents and 1 cent respectively, translalating into a payout ratio of 87% and yield of 5.1%. Price to book is 1.1x.
We maintain BUY.
Source: Lim & Tan
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