Sat, Nov 16, 2013 - Page 14 News List

Slight luxury tax revision might be good: analysts

HOUSING BLUES:Market watchers were upbeat after the finance minister said the ministry would not extend the holding period of real-estate subject to luxury taxes

By Kevin Chen  /  Staff reporter

In the third quarter, Huaku posted a net loss of NT$84.76 million (US$2.86 million), or a net loss per share of NT$0.31, on sales of NT$108.28 million.

Last quarter’s loss was mainly due to the change in the international financial reporting standards (IFRS) accounting rule, which does not allow the company to book sales until the completion of the project.

Huaku is forecast to see net profit grow more than 50 percent year-on-year to between NT$2.91 billion and NT$3.05 billion this year, according to estimates made by HSBC Securities and Credit Suisse Securities.

Barclays said it also preferred Kindom Construction Corp (冠德建設), as it believes Kindom’s sales and earnings momentum will improve this quarter following the booking of two new residential projects.

Kindom, which also reported a net loss of NT$13.58 million or NT$0.03 per share last quarter on little accounting bookings of new projects, could see continued sales and earnings strength into next year on the completion of another five residential projects, Barclays said.

Shares of Huaku rose 1.5 percent to NT$87.8 yesterday, while those in Kindom advanced 4.4 percent to NT$38.

This story has been updated with additional information since it was first published.

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