Hwa Hong Corpn profit warning (...again)

I have sold off all my Hwa Hong shares at break even last week.  This evening, the company announced profit warning to its about-to release fourth quarter results (in early February).  Not really a surprise as the company already issued these profit warnings in its past three quarters results as well.  One full year and nothing have been done to turn around the situation!

Will the company still pays dividends (usually in May and August months).  Answer is "yes" as seen from its past years records.  The company still has a healthy balance sheet to reward its loyal supporters say, no lesser than $0.01 per share (for payment in May); which is really quite good when comparing it to most Reits which have already announced their dividends (for payment in February).


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"...... The  Directors  of  Hwa  Hong  Corporation  Limited  (the  “Company”)  wish  to  issue  a  profit  warning regarding the financial results of the Company and its subsidiaries (the “Group”) for the fourth quarter ended 31 December 2011 and for the financial year ended 31 December 2011.

The Group is expected to report a loss for the fourth quarter ended 31 December 2011 compared with a  profit  for  the  corresponding  period  in  2010 mainly due  to :-

(i) lower rental revenue due  to refurbishment works on a residential property in the UK and our warehouse in Paya Lebar

(ii) lower profit from trading of investment securities

(iii) lower gain from disposal of RiverGate apartments due to a more cautious market following the introduction of additional buyers’ stamp duty by the Singapore Government

(iv) higher allowance for impairment losses on investment securities.

For the above-mentioned reasons, the Group is expected to report a significant decline in profit for the full year ended 31 December 2011 as compared with the corresponding period in 2010 but the Group will remain profitable for the full year ended 31 December 2011.

This profit warning is based on a preliminary review of the unaudited financial results of the Group.  Further details of the Group’s performance will be disclosed when it releases its unaudited financial results for the full year ended 31 December 2011 in early February 2012. ...."

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