Wah, GuocoLand just got slapped, and slapped hard. H2 net profit crashed 70% year-on-year, from S$32.4 million down to just S$9.8 million. Revenue also took a beating, sliding 29% to S$642 million from S$900.3 million. Earnings per share for H2? Just S$0.0028, compared to S$0.0256 last year. That’s like your COE bid getting slashed by two-thirds overnight. Painful, right?
For the full year, net profit dipped 11% to S$95.2 million, down from S$107.1 million. Full-year EPS fell to S$0.0736 from S$0.0843. Not a total collapse, but still a clear step down.
Now here’s the twist that’ll make you go “aiyah.” Despite the profit drop, the Board actually raised the dividend—S$0.08 per share, up from S$0.07 last year. Record date is Nov 5, payment on Nov 18. It’s like your hawker uncle raising the chicken rice portion even though ingredient prices went up. Generous, but confusing.
So what caused this bloodbath? China, lah. GuocoLand had to book allowances for projected losses on its China development properties. These China losses ate into the gains from Singapore, dragging the whole group down. The CEO called it a “prudent reassessment” of the China residential portfolio—translation: they’re cutting losses before things get worse. Authorities are also moving to scale back commercial land sales and encourage the return of undeveloped plots, which could eventually ease the office supply glut weighing on the market.
Singapore side isn’t all bad news though. Property investment rental revenue grew 5% to S$143.2 million. New projects like Springleaf Residence, Penrith, and River Modern are lined up for 2029-2030 completion—like waiting for the next MRT line extension, slow but steady. Lentor Modern mall opened in January and has already achieved a 95% commitment rate as at end-June. Meanwhile, the broader residential market continues to see activity, with the largest en bloc deal of 2024 being the $810 million acquisition of Thomson View Condominium by UOL and CapitaLand, signalling that developer appetite for land remains alive in Singapore.
Associates and JVs actually helped cushion the fall. Share of profit swung to S$32.4 million, reversing last year’s loss, thanks to the Thistle Johor Bahru hotel sale and contributions from Lentor Hills Residences.
Market reaction? Share price dropped nearly 3%. Investors are nervous, understandably. China exposure remains the wildcard. Analysts are now watching how revenue gets recognized on future residential launches. For now, GuocoLand’s betting on its “twin engines”—development and investment in Singapore—to power through the storm.
