Housing agency Hiyes International Co (海悅國際開發) and elevator maker Golden Friends Corp (崇友實業) are expecting stable business growth this year, as the local property market steadily emerges from a slowdown induced by economic uncertainty and tight monetary policy.
Hiyes said business visibility is better this quarter from a year earlier, judging by agency cases and construction revenue.
Things might be quieter during the second quarter of the year, as developers would seek to digest unsold houses and launch major presale projects in the third and fourth quarters that would generate billions of revenue, it said.
Photo: CNA
Hiyes said it is cautiously assessing whether to undertake urban renewal projects in Taipei and New Taipei City in a bid to diversify its income sources and strengthen its competitive edge.
The company in December last year recognized construction revenue of NT$2.47 billion (US$78.02 million) from a mixed-use complex in Taichung, which helped boost net income to NT$1.66 billion for the whole of last year, or earnings per share of NT$13.86.
The results represent a 77.16 percent improvement from 2022 on the back of strong demand after the government in August last year introduced interest subsidies and other favorable lending terms for first-home purchases regardless of the age of the buyer.
Hiyes last week said that it plans to distribute a NT$7 per share in cash dividend and another NT$2 stock dividend from last year’s earnings, equivalent to a payout ratio of 64.9 percent.
Elevator maker Golden Friends last week posted record-high earnings per share of NT$5.06 for last year, up 5.57 percent from a year earlier, thanks to stable demand, maintenance requirements and the divestment of an office building in Kaohsiung.
Revenue last year grew 11.16 percent to NT$5.27 billion, the company said, due to more elevator demand from new residential complexes and office buildings.
The company has proposed distributing a NT$4 per share cash dividend from last year’s earnings, indicating a payout ratio of 80 percent.
The company said it has a guarded, but optimistic view for this year with ample orders on hand that would provide profit momentum.
The company said that it is to introduce artificial intelligence and environment-friendly technologies when developing new elevators.
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