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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