Shares in Chong Hong Construction Co (長虹建設) yesterday rose 2.37 percent, bucking the TAIEX’s 0.56 percent decline, after the Taipei-based developer posted strong earnings results for the first three quarters of this year.
Chong Hong retained its title as the nation’s most profitable developer with a net income of NT$3.59 billion (US$116.17 million) from January to September, or earnings per share (EPS) of NT$12.38.
The results represent nearly twofold pickup from the same nine months last year and already surpassed last year’s EPS of NT$10.48, as the firm delivered new housing units and recognized profits, company data showed.
Revenue rose to NT$10.67 billion, the company said in filings with the Taiwan Stock Exchange. Gross margin stood at 37.96 percent.
Chong Hong last week approved plans by a subsidiary to take a construction contract in Taichung. The investment would not exceed NT$1.88 billion and is intended to develop residential units for sale or for rent later, its filings said.
It acquired two plots of land in Taipei’s Neihu District (內湖) for NT$4 billion earlier this year that might be turned into office space next year or later.
Analysts expect it to book more profits this quarter for new apartment buildings in New Taipei’s Linkou District (林口), raising its net income to a new five-year high.
Chong Hong EPS in 2012 was NT$21.28 and NT$20.36 in 2013 before the government introduced measures to cool the property market.
Shares for building material and construction firms remain resilient, with 1.32 percent drop this year, compared with TAIEX’s 8.15 percent decline, exchange data showed.
Shares in Highwealth Construction Corp (興富發) have advanced 10.64 percent this year, while Farglory Land Development Co (遠雄建設) jumped 10.9 percent, bourse data showed.
High Wealth earned an EPS of NT$3.22 in the first three quarters, thanks to successful digestion of apartment complexes.
Farglory posted an EPS of NT$1.29 as of June and might see improvement after selling an office building in downtown Taipei for NT$2.25 billion in September.
Chong Hong shares have underperformed in comparison, with a 4.31 percent decline this year after failing to challenge the NT$100 mark in June.
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