The Market Monitor Minding the Nation's Business
Listed mass housing developer 8990 Holdings Inc. is confident of surpassing its P10-billion revenue target this year on the back of new projects and good first-semester financial performance.
“We hope so, maybe a little bit (higher than our target),” said 8990 Holdings President and Chief Executive Officer Januario Jesus Atencio.
Atencio said the company has projects that it will launch and provide revenues this year, which are not part of this year’s P10-billion projection.
He did not identify these projects.
8990 Holdings already launched seven of the nine projects pipelined for this year, located mostly in the Visayas and Mindanao. These would deliver 4,486 housing units with value of P4 billion this year.
It will launch the remaining two projects in Cebu and Davao City this third quarter.
Of the projected revenues this year, the company said 42 percent will come from Luzon, 32 percent from Visayas and 27 percent from Mindanao.
It also expects its net income to expand by 15 to 21 percent to a range of P3.8 billion to P4 billion.
Atencio said revenues and income are still driven by the country’s continued economic growth; the increasing overseas workers’ remittances, growing business-process outsourcing and information technology (IT) sector, and the country’s housing backlog, which is at sizable figure of four or five million.
8990 Holdings posted P2.31 billion net income in the first semester, up 18 percent from P1.96 billion during the same period last year.
The hike surpassed the firm’s goal, due to higher sales as new projects were launched.
The company’s gross sales also surged by 12 percent to P4.51 billion from P4.04 billion.
Atencio said the first-semester net income surpassed this year’s midyear guidance of P2 billion by 6 percent.
Atencio said that, during the first semester, the firm opened six out of the nine projects slated for 2015.
He also said 744 housing units from four projects were already delivered, contributing P803 million in revenues.
Atencio said housing revenues, plus contract to sell (CTS) income reached P4.9 billion in the first half, up by 16 percent from last year. Housing-related income remained to be 97 percent of the gross revenues.
“We are still on track to meet our earnings guidance for 2015,” he added.
8990 Holdings targeted to grow by 20 percent its net earnings to P4 billion, and gross income to P10 billion this year.
Atencio said they continued to expand its land bank slowly to 446 hectares from last year’s 334 ha.
“Our present land bank has an expected yield of just over 89,000 units, equivalent to an estimated P108 billion in revenue. This translates to a business activity equivalent to five years growing at 20 percent per annum,” he added.