8990 Holdings expects P8-B revenues in ’14
Leading mass housing developer 8990 Holdings Inc. sees gross revenues breaching the P8-billion mark this year, at least 40 percent of which is expected to end as net profit.
In an investors’ briefing on Friday, 8990 Holdings president and chief executive Januario Jesus Gregorio Atencio III said that by embarking on the P9-billion follow-on equity offering, the company would pare down debt and free up more funds for expansion and working capital. The goal is to double the company’s landbank, currently at 250 hectares, to support future growth.
The projected revenues of P8 billion for this year suggests a growth of 49 percent from P5.36 billion last year.
Net profit margin this year is seen to be at least 40 percent, suggesting that 8990 Holdings was hoping to post a net profit of at least P3.2 billion this year, about 47 percent higher than the P2.18 billion net income booked last year.
The projected P8 billion in revenues this year is seen to be derived from the delivery of 8,600 to 9,000 new mass housing units.
In a bid to augment funds for expansion, Atencio said that by the third quarter of this year, 8990 Holdings might be able to undertake the first private sector offering of housing asset-backed securities.
Under this scheme, the company plans to cede P1 billion of its receivables to investment bank SB Capital for conversion into securitization paper. This means that debt securities will be created backed by cash flow from these receivables as underlying assets. Doris C. Dumlao
