Powerlong pins income hopes on shopping malls
Powerlong Real Estate Holdings posted a 3.4 per cent increase in its underlying profit last year, and expects a solid improvement as projects come on stream in the next two years.
The company said its bottom line rose 4.7 per cent to 3.19 billion yuan (HK$3.78 billion). Excluding gains from property revaluation, the underlying profit rose to 1.26 billion yuan from 1.22 billion yuan in 2009.
Chief executive Hoi Wa-fong said seven shopping centres on the mainland would be completed in the fourth quarter of this year. They include the Yancheng Powerlong City Plaza, comprising 495,786 square metres of gross floor area, and the 492,699 sqmetre Suqian Powerlong City Plaza, both key projects in Jiangsu province.
Rental income would rise after they were completed, Hoi said.
Revenue from development projects were also expected to rise sharply, with targeted contract sales of 10 billion yuan, he said.
Of this, 70 per cent would come from residential and the remainder from commercial developments. This compares with last year's contract sales of 6.22 billion yuan.
The average price of residential contracted sales increased to 5,933 yuan per square metre from 3,767 yuan in 2009, and the average price of retail contracted sales rose to 10,634 yuan per square metre from 9,700 yuan.
Rental income and property management services income swelled to 237 million yuan from 127.5 million yuan in the previous year.
Hoi said the gains from investment properties accounted for about 5 per cent of Powerlong's total revenue. The company expected to see the ratio improve to more than 20 per cent by 2014.
Directors declared a final dividend of 6 fen a share.
Excluding property revaluation gains, Powerlong Real Estate Holdings' underlying profit last year rose: 3.4%