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SMDC aims for 20% growth

Posted on April 26, 2012 12:02:52 AM

CONDOMINIUM BUILDER SM Development Corp. (SMDC) aims to top 2011 profits by as much as a fifth this year on the back of sales from new projects, a ranking official yesterday said.

“We are aiming for a 15-20% minimum growth for this year, both in terms of topline and bottom line,” Rosaline Y. Qua, SM Development president and chief operating officer, told reporters at a press briefing after the company’s annual stockholders’ meeting.

This, however, is slower than the 38% profit hike the company enjoyed last year, when it boosted its full-year consolidated net income to P4.18 billion from P3.02 billion in 2010.

“Certain government regulations may still affect our operations or issues regarding income-booking and, of course, external factors we absolutely have no control over. We are still guardedly optimistic,” Ms. Qua added.

The upbeat forecast comes as Ms. Qua brushed off rumors that a condominium market oversupply may be at hand.

“There is no saturation on our part because we tailor-fit our products to what the market needs and what it can afford,” Ms. Qua said.

For 2012, the developer is looking to spend around P30 billion in capital expenditure and launch five residential condominiums in Metro Manila.

These projects, which will have an estimated total market value of P37 billion, will add to its current portfolio of 15 SM Residences projects and two projects under M Place.

Expansions are also set for other existing developments.

So far, SM Development has hiked its first-quarter consolidated net income by 33% to P1.21 billion from P916 million in the same period last year, reflecting a 59% year-on-year growth in the value of pre-sold units to P8.97 billion in the quarter.

Consolidated revenues increased by 72% to P5.83 billion.

Moving forward, SM Development is firming up its overseas expansion plans, with work on a number of high-rise structures in China seen to start as early as this year, Hans T. Sy, Jr., SM Development vice-chairman and chief executive officer, said in the same press briefing. -- Franz Jonathan G. de la Fuente

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