Metro posts $51m net profit in Q4 on fair value gains

Mr Yip Hoong Mun (above), Metro's current deputy group chief executive officer, takes over from group CEO Lawrence Chiang this Saturday. Mr Chiang will be the group's adviser from next month.
Mr Yip Hoong Mun (above), Metro's current deputy group chief executive officer, takes over from group CEO Lawrence Chiang this Saturday. Mr Chiang will be the group's adviser from next month.

Rise comes amid gain on investment property of $14.7m from its GIE Tower in Guangzhou

Mainboard-listed Metro Holdings yesterday recorded a net profit of $51 million for the fourth quarter ended March 31, a sharp rise from $930,000 in the year-ago period.

This came on the back of fair value gains on its investment properties from joint venture results.

Earnings per share fell to 11.5 cents, from 19.2 cents a year ago, according to a regulatory filing before the market opened.

Metro is proposing a final dividend of two cents and final special dividend of 2.5 cents a share. A year ago, it gave a final dividend of two cents and a special dividend of three cents. Its shares closed at $1.02 yesterday, up three cents.

Revenue for the quarter increased 16.6 per cent to $40 million, from $34.3 million a year ago.

Metro's property division saw revenue rise to $7.9 million, from $1.7 million a year ago, due to $6.1 million in revenue from the sale of property rights of residential development properties in Jakarta.

Its Singapore retail division recorded marginally lower sales at $32.1 million, from $32.6 million a year ago. In Indonesia, the company narrowed its loss to $700,000 from $900,000 a year ago, with its associate company in Indonesia reporting strong competition.

Its fair value gain on investment property of $14.7 million was from its GIE Tower in Guangzhou, China.

The share of results of joint ventures increased to $32.1 million, from $3.2 million a year ago, owing to fair value gains of $22.6 million on investment properties from Metro Tower and Metro City, Shanghai, and 5 Chancery Lane, London.

The 50 per cent-held joint venture owning the London property recorded a fair value gain of $3.3 million, compared with a fair value loss of $4.2 million the year before.

Other net income fell 48.1 per cent to $16 million, from $30.8 million a year ago.For the year ending March 31, net profit fell 40.2 per cent to $95.3 million, from $159.2 million a year ago. Revenue was up 26.1 per cent to $172.0 million, from $136.3 million a year ago.

On its outlook, Metro said rental income from investment property GIE Tower and those held by its joint ventures are expected to remain steady. It added that it would "continue to be subject to significant currency translation adjustments on foreign operations", which will affect the results and other comprehensive income and the balance sheet.

In a separate filing yesterday, Metro said its current deputy group chief executive officer Yip Hoong Mun will be group CEO and executive director from Saturday. He succeeds Mr Lawrence Chiang, who will be the group's adviser from next month.

A version of this article appeared in the print edition of The Straits Times on May 29, 2019, with the headline 'Metro posts $51m net profit in Q4 on fair value gains'. Print Edition | Subscribe