Makati—(PHStocks)—Mass housing developer 8990 Holdings Inc. (PSE: HOUSE) booked a 23% growth in earnings and exceeded its full-year target of PhP4 billion on the back of the company’s strong presence, brand acceptance, building innovation and track record of housing delivery in the growth centers of the country: NCR, Angeles, Cebu, Iloilo and Davao.
The company’s net income reached PhP4.05 billion last year or PhP746 million higher compared to PhP3.31 billion booked in 2014, as gross sales rose 24% to PhP9.65 billion from PhP7.79 billion amid strong sales and increased construction capacity.
Meanwhile, Core Business Income, which comprises housing and CTS net revenues, breached the PhP10 billion milestone with PhP10.7 billion from PhP8.4 billion lat year, registering a 27% increase. Income from contract to sell (CTS) receivables jumped 33% to PhP1.2 billion from PhP900 million.
About 85% of total revenues came from DECA Homes subdivisions located in Cavite, Pampanga, Iloilo, Davao and General Santos, while 15% were contributed by medium-rise Urban DECA Homes projects in Cebu and Muntinlupa.
8990 was able to expand its land bank close to 500 hectares with an expected yield of a little over 100,000 housing units worth P109 billion. The company purchased land in Davao, Iloilo, Bacolod, and Davao as well as in Las Piñas and Cubao last year.
For 2016, the mass housing developer sees its net income growing by 20% to PhP4.8 billion on the back of a 24% increase in revenues to PhP12 billion.
The mass housing developer is set to launch 14 new projects that would add 75,608 units worth PhP7.3 billion to its inventory. The projects include horizontal developments under the Deca Homes brand in Bulacan, Iloilo, Cebu, Davao, and Bacolod as well as medium-rise building projects under the Urban Deca Homes in Cavite, Cebu, and Manila.
In addition to the new projects, the company said 11 ongoing projects would provide an additional 5,377 units worth PhP4.8 billion this year.
For the fourth quarter of 2015, the company’s net income surged 86% to PhP887 million from PhP477 million in the same quarter in 2014 as sales increased by 67% to PhP2.59 billion from PhP1.55 billion.
The company noted the external threats to housing industry this year including a potential delay in the release of permits for new projects due to the presidential, national and local elections in May as well as the longer processing of accreditation by the Board of Investments (BOI).
8990 also cited the tension in the Middle East particularly between Saudi Arabia and Iran as well as the continued softening of oil prices that may affect the monthly amortization payments of overseas Filipino workers in the petroleum industry as well as seafarers manning the oil tankers.