Ho Bee Investment's profits crashed 64% to $26.2m

No thanks to lower revenue from property projects.

According to Phillip Securities Research, Ho Bee Investment's earnings results revealed a 2Q13 PATMI of S$26.2mn, 64.0% y-y decline, mainly attributed to lower revenue recognized from property developments; S$3.3 million, 97.6% y-y decrease.

Here's more:

Property Investment reported revenue of S$2.8mn, largely unchanged from 2Q12. Company continues to look towards overseas, hunting for profitable development projects.

We anticipated the poor quarterly performance forresidential developments. Hence, there are little changes to our valuation of the company. Largely in line with our forecast, 1H13 revenue formed 46% of FY13 estimates.

While 1H13 PATMI accounts for a mere 15.8% of FY13 estimates, the potential revaluation gains from The Metropolis should make up the shortfall. We remain positive towards this counter as we expect greater amount of overseas opportunities coming through.