Allgreen Properties Limited 1H 2024: Strategic Acquisitions Drive Revenue Growth Amid Increased Borrowings

Report Summary: “Allgreen Properties Limited – 1H 2024 Financial Review”

Report Date and Financial Year

• Reporting Period: The report covers the financial performance for the first half of FY 2024, specifically the period ending June 30, 2024.

Key Financial Highlights

• Revenue: The company reported revenue of S$279.1 million in 1H 2024, an increase from S$270.5 million in 1H 2023.
  • Retail & Office segment revenue increased by 45% to S$81 million due to acquisitions of The Seletar Mall and Johor Bahru City Square Mall.
  • Development Properties segment revenue dropped by 9% to S$160 million, primarily due to the completion of three development projects in 2023.
• Profit Before Taxation: Increased to S$89.4 million in 1H 2024, compared to S$54.5 million in 1H 2023.
• Profit for the Period: The company achieved a profit of S$73.1 million in 1H 2024, up from S$44 million in the same period last year.
  • Profit attributable to owners of the company is S$56.3 million, while the remaining S$16.8 million is attributable to non-controlling interests.
• Net Asset Value (NAV) per Share: Increased slightly from S$1.90 as of December 31, 2023, to S$1.92 as of June 30, 2024.
• Gearing Ratio: The net gearing ratio increased from 0.26 times as of December 31, 2023, to 0.43 times as of June 30, 2024, due to higher borrowings.

Dividend Information

• The report does not mention any dividends being declared for the period.

Notable Activities and Actions for Profitability

• Acquisitions: The company acquired The Seletar Mall and Johor Bahru City Square Mall, contributing significantly to revenue growth in the Retail & Office segment.
• Completion of Development Projects: The completion of three development projects in 2023 led to a decrease in revenue in the Development Properties segment.
• Increased Finance Costs: Higher finance costs were recorded due to increased borrowings for the acquisitions mentioned.

Recommendations for Investors

• For Current Shareholders:
  • Hold: Given the increase in revenue and profitability, holding the stock could be beneficial. The company’s recent acquisitions and developments are likely to provide steady returns.
• For Potential Investors:
  • Consider Buying: The growth in the Retail & Office segment and acquisitions indicate strategic expansion. However, potential investors should consider the increased gearing ratio and higher finance costs.

Disclaimer

• This recommendation is based solely on the provided financial report and should not be taken as financial advice. Investors are encouraged to perform their due diligence or consult a financial advisor before making investment decisions.