8990 on track of 2015 targets

MANILA, Philippines - Mass housing developer 8990 Holdings, Inc. is on track to meet its financial targets for the year, its top official said.

 The company has set a profit goal of P3.8 billion to P4 billion on revenue targets of P9.6 billion to P10 billion for 2015.

“We are still on track to meet our earnings guidance in 2015,” 8990 president Januario Jesus Atencio said during the company’s annual stockholders’ meeting yesterday.  The income forecast would translate to a 20 percent growth.

In the first semester, the company’s net income grew by 18 percent.

Atencio said 8990 expects to sustain its positive momentum with nine new projects set to be launched this year. 

“Our job in management therefore is to make sure these new projects achieve their desired operating speeds in the shortest possible time so they can start to contribute to the targets in 2015,” he said.

The company is behind Deca Homes. Its projects are located in Cebu, Iloilio, Cavite, Davao, Pampanga and along EDSA in Metro Manila where its first Urban Deca Tower is rising.

In 2014,  net income jumped by 51 percent to P3.3 billion from P2.2 billion the previous year.

“Revenue increased by 43 percent while operating expense only rose by 36 percent. Net margin of 43 percent exceeded the benchmark of 40 percent,” Atencio reported.

He said last year’s macroeconomic environment provided for a bullish and positive market for primary housing.

“These factors are still in play today. What is new is Pag-IBIG Fund’s lowering their core interest rate to 6.5 percent, and the latest HUDCC policy increasing the ceiling of low-cost housing from P1.25 million to P1.7. This means that buyers of DECA homes can now avail of lower monthly amortizations even at higher package prices that allow us to provide more added value to our housing products and services,” he said.