Ho Bee’s net profit up 182% to $11.6m in 1Q15

Thanks to a growing rental income stream.

Ho Bee’s Singapore and London properties are gaining attention.

Ho Bee reported a 182% increase in 1Q15 net profit to SGD11.6m, bolstered by a growing
stream of rental income from its commercial properties in Singapore and London, according to a report by RHB.

Revenue rose 81% to SGD31.0m, compared to SGD7.1m a year ago.Total shareholders’ fund as at end of March 2015 amounted to SGD2.6 billion, representing a NAV of S$3.93 per share.

RHB adds that Ho Bee has sidestepped the downturn in the Singapore residential market and built up a stream of steady, recurring income from its portfolio of investment properties. We like the stock for management’s track record in value creation. Despite a 15% increase in price YTD, the stock is still inexpensive, trading at 0.6x P/NAV.