Cebu Landmasters Inc. (CLI), Cebu’s leading homegrown property developer, reported P2.2 billion in first quarter residential reservation sales, equivalent to three-fourths of reservation sales achieved by the company in 2016.
The reservation sales level is a leading indicator of the kind of revenues that CLI can recognize in 2018 and 2019.
Talking to reporters after the investors’ briefing on Wednesday, CLI founder and president Jose Soberano III said last year’s reservation sales amounted to P2.9 billion.
Of the P2.2 billion in reservation sales posted by CLI in the first quarter of this year, Soberano said 70 percent was contributed by high-rise residential developments.
The reservation sales seen in the first quarter have approximated CLI’s entire revenue base of P2.18 billion in 2016.
From 2012 to 2016, CLI’s net income has expanded at a compounded annual growth rate (CAGR) of 150.49 percent reaching P702.32 million in 2016.
Revenues have also seen a CAGR of 61.47 percent over the same period. Return on equity last year stood at 50.49 percent.
CLI is raising as much as P2.9 billion from an initial public offering priced at P5 a share, aiming to boost funds for expansion in Visayas and Mindanao.
At P5 a share, industry sources privy to the offering said CLI’s offering was valued at a price to earnings (P/E ratio) of 6.8x.
This means that investors will pay 6.8 times the earnings per share that the company will likely post this year, giving more room for an upside once the stock market knows more about the company, the first Cebu-based company to tap the capital market.