GuocoLand has reported a FY25 operating profit of S$299m, a 7% year-on-year decline, largely meeting expectations. The company’s robust performance in Singapore, where operating profit rose by 15% to S$382m, helped offset challenges in China. Revenue increased by 5% to S$1.916b, driven by a 3% growth in the property development sector and a 28% rise in China due to the handover of residential units at Guoco Central Park in Chongqing.
Despite the positive figures, GuocoLand made an S$82m provision for foreseeable losses on its China development properties. The property investment business saw a 22% increase in revenue to S$281m, with high occupancy rates at Guoco Tower and Guoco Midtown. The company proposed a final dividend of 7 Singapore cents per share, reflecting a nearly 4% yield.
Looking ahead, GuocoLand plans to launch four new residential projects in Singapore, including Faber Residence and Penrith at Margaret Drive, which are expected to sustain earnings. The company is also set to open Lentor Modern mall in January 2026, which already has an 85% commitment rate.
In China, GuocoLand faces ongoing challenges, particularly in residential developments. The company has recognised additional provisions due to pricing adjustments within regulatory limits. However, management remains optimistic about China’s long-term potential and is committed to a disciplined approach in capital deployment.
GuocoLand maintains a “Buy” rating with a revised target price of S$2.50, reflecting a 45% discount to its revalued net asset value. The company continues to explore monetisation opportunities to unlock further value from its portfolio.
“`
