8990 sees ’16 profit increasing to P4.8b
Mass housing developer 8990 Holdings Inc. expects net income to rise 20 percent in 2016 to P4.8 billion as it plans to unveil 14 new house and lot and mid-rise developments across the country.
8990 Holdings said in a disclosure to the stock exchange 2016 revenues were projected to increase 24 percent to P12 billion amid the growing tension between Saudi Arabia and Iran and the softening of oil prices that could affect the monthly amortization payments of migrant Filipino workers in the petroleum industry and seafarers manning oil tankers
Aside from the external threats, the company expects a potential delay in the release of permits on new projects due to the presidential, national and local elections in May and the longer processing of accreditation by the Board of Investments that could also affect sales this year.
8900 Holdings said the 14 new projects would add 75,608 units worth P7.3 billion to its inventory. These projects include horizontal developments under the Deca Homes brand in Bulacan, Iloilo, Cebu, Davao, and Bacolod, and medium-rise building projects under the Urban Deca Homes in Cavite, Cebu, and Manila.
The property developer said net income in 2015 increased 23 percent to P4.05 billion, exceeding the full-year target of P4 billion.
Gross sales rose 24 percent to P9.65 billion from P7.79 billion amid strong sales and increased construction capacity.
Core business income, which comprises housing and income from contract to sell receivables, hit P10.7 billion, up 27 percent from P8.4 billion in 2014.
Approximately 85 percent of total revenues came from house and lot development under the Deca Homes brand in Cavite, Pampanga, Iloilo, Davao and General Santos, while 15 percent were contributed by medium-rise Urban Deca Homes projects in Cebu and Muntinlupa.
8990 Holdings in 2015 acquired close to 500 hectares of land with an expected yield of a little over 100,000 housing units worth P109 billion. The company purchased lands in Davao, Iloilo, Bacolod as well as in Las Piñas and Cubao last year.
Net income in the fourth quarter surged 86 percent to P887 million from P477 million in the same quarter in 2014, as sales increased 67 percent to P2.59 billion from P1.55 billion year-on-year.