Robinsons Land reports 44% growth in 1Q07 profit
By: JPMorgan Philippines,
February 15, 2007
Business World reports that Robinsons Land's
1Q07 net profit ended December reached Php607 million, up 44%Y/Y from Php422
million last year. Revenues grew 24% to Php2.1 billion, while real estate
cost and expenses increased by 28% to Php778 million due to the opening of
Crowne Plaza Hotel. The full financial results have not been released.
Net profit came 4% above JPMorgan expectations and 5% above consensus'.
Revenues, however, were inline with JPMorgan and we suspect that margin
expansion drove profitability higher. As we expected, the high rise
division, coming from condo sales and BPO office rentals, were the main
drivers of growth. The high rise division saw 101% Y/Y rise in operating
income to Php329 million due to the completion of One Adriatico Place and
Fifth Avenue Place and increased office rentals. According to Frederick Go,
high rise now accounts for 40.5% of total revenues, while commercial centers
takes up 40.2% of the revenue pie -- the first year that the company's high
rise division overtook commercial centers as the biggest contributor to
revenues.
Meanwhile, commercial centers posted revenues of Php831 million, up 3% Y/Y
if one time gains in the previous year's financial results are not factored
in. Robinsons Lipa and Galleria were placed under partial renovation and
expansion, leading to a reduction of 10,500 square meters in their gross
leasable areas. More details and comments to follow following the release of
the financial statements. Maintain Overweight on RLC.