8990 Holdings [HOUSE 10.50 1.74%] [link] posted a FY21 net income of P7.2 billion, up 49% from its FY20 profit of P4.8 billion, and up 23% from its pre-COVID high of P5.9 billion set in FY19.
This result is a profit record for HOUSE, leading HOUSE’s President and CEO, Anthony Vincent Sotto, to say that the company had ”defied all the odds” of a two-year pandemic.
Mr. Sotto took the result as a strong indicator of the demand for affordable housing, and (maybe more importantly?) the “optimism of our buyers in the economy and their confidence in the stability of their future revenue streams.”
Gross sales were up 36% from its FY19 high to P20.3 billion. HOUSE reported that its vertical segment (condos) delivered 41% of revenues, while its horizontal segment (house and lot) brought in 59%. HOUSE reiterated its goal to sell P164 billion in real estate over the next “7 to 8 years”.
MB BOTTOM-LINE
HOUSE blamed its late filing on COVID-19, which feels kind of like a weak excuse considering the company managed to break corporate sales and profitability records.
Maybe HOUSE just needed a few extra weeks to count all dem pesos (ayyyy).
Either way, this is a great result for HOUSE shareholders, who have probably been feeling a little shaken over the past month: HOUSE’s share price is up 47% over the past 12 months, but is actually down 24% since the start of May.
Haus Talk [HTI 1.01], a similar developer of regional affordable housing, is down 11% over the past month, and while it’s not on the same level as HOUSE’s decline, it’s still evidence of a tough month for the emerging affordable housing sector.
While Ayala Land [ALI 29.60] trades at a multiple of 35 times its earnings-per-share (EPS), and HTI trades at 21 times EPS, HOUSE trades at just 8 times EPS. Not exactly sure what to make of that just yet.
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