8990 HOLDINGS INCOME JUMPS 74% #HOUSE Mass housing leader 8990 Holdings Inc. booked a 74 percent increase in earnings for the third quarter, equivalent to P1.02 billion in net income compared to P589 million for the same period last year, on the back of a sustained 60% gross and a 45% net margin for the past three quarters. 8990 is traded in the PSE under the ticker name: House. In their 3rd quarter briefing, 8890 Holdings President and CEO Januario Jesus Atencio said that their 74% income growth is a result of both the present bullish economic environment as well the preparations they started early this year that enabled them to continously capture a bigger portion of the affordable housing market. “Externally, we believe that our consistent GNP growth, OFW remittances and the growth in the BPO/call center/IT sectors have meant bigger disposable incomes for the middle and lower levels of our social pyramid that ultimately provides the basis for increased home sales amidst the 4 million backlog in affordable housing,” he explained. Atencio added that, “Internally, we’ve anticipated this, so we worked hard to open up 9 new projects this year with three more scheduled to start before the year ends. At the same time, we increased our annual production capacity by 35% to 10,560 units, or an additional 2,500 units from 8,000 units from last year”. A significant contributor to increased performance this quarter is the growing acceptance of Deca Home’s innovative in-house financing program called CTS-Gold that continues to provide working class Filipinos easy access to owning their first primary asset. Customer demographics for 8990 indicate that 66% of their buyers are young (23-39 year years old), college educated, gainfully employed, earning a monthly salary of at least P30,000.00, generally optimistic about their future and aspiring to move up from being renters into primary home asset owners. Atencio reported that, out of the 5,867 housing units that have already been delivered to homeowners this year, their projects in Cebu and Davao accounted for 54% or 3,161 units. Luzon projects in Angeles and Cavite accounted for 35% with 2,064 units, while Iloilo contributed 642 units or 11% of total delivery. He added that 87% of revenue this quarter was derived from their housing subdivision projects, while 13% came from their medium-rise building (MRB) project in Mandaue City, Cebu. For the third quarter, 8990’s migration of their CTS accounts to Pag-IBIG Fund amounted to P425 million, or P1.573 Billion total for the three quarters this year. Atencio further stated that, “the faster processing of take-outs of Pag-IBIG Fund have provided us greater liquidity resulting in lesser borrowings this quarter, and we continue to work closely with the Fund to further increase the momentum of take-outs which we hope will double by year-end.” 8990’s total CTS portfolio now stands at P12.9 billion earning an average annual yield of 9.5% at 95% collection efficiency. Atencio concluded that, “with first three quarters’ gross earnings of P6.16 Billion, we are clearly on track to keep our commitment to end this year with P7.6 to P8.0 Billion in gross income with at least 60% gross margin, and a net income of P3.0 to P3.2 Billion in net earnings with at least 40% net margin. edge.pse.ph/openDiscViewer.do?edge_no=72ab24f6e76bef291db82e377ee70f3b#sthash.Arz8pZ7h.dpbs 11/04/2014
Posted on: Tue, 04 Nov 2014 01:29:17 +0000
Trending Topics
Recently Viewed Topics
© 2015