Affordable housing developer 8990 Holdings targets full-year P5-B profit

Mass housing developer 8990 Holdings is seen on track to deliver at least P5 billion in net profit this year after posting an 18-percent net income growth in the first semester.

Based on the company’s net margin target of 37.5 percent and the projected revenues of P13.5 billion, full-year net profit will reach P5.06 billion, up by 8.35 percent from the bottom line last year.

In the first semester, 8990 Holdings posted P2.82 billion in net profit compared to P2.39 billion the previous year. The growth was driven by higher revenues unlocked from its flagship project, Urban Deca Homes (UDH) Manila, a 13-tower residential complex in Tondo, Manila.

Six-month revenues went up by 17 percent year-on-year to P7.01 billion while net margin was at 40.2 percent, better than the company’s full-year target of 37.5 percent.

“Although we exceeded our first half slightly, we still have to deal with the rainy season and ghost month so the uncertainty is still there. Nevertheless, I am sure we will be able to reach our year-end (revenue) target of P13.5 billion,” 8990 Holdings president Willie Uy said.

Total housing units delivered in the first six months increased by 19 percent year on year to 4,934 units.

Of the P7.01-billion revenues booked in the first semester, 42 percent came from sales from high-rise buildings, 23 percent from medium-rise buildings, and 35 percent from horizontal projects. On a regional basis, 67 percent came from Luzon, 23 percent from Visayas and 10 percent from Mindanao.

“Rising demand for affordable housing in the country has allowed us to sustain our revenue growth in the first half of 2019,” Uy said. —DORIS DUMLAO-ABADILLA