Most of the 97 companies that released their full-year earnings for the financial year ended June 2011 saw continued growth, with combined net profits of approximately S$2.4 billion, 14.6 percent higher than the total earnings recorded in the previous financial year.
Three of the top five earners for this year were property companies and analysts noted that real estate groups had benefited from strong sales in the past two to three years, according to a report by The Business Times.
Luxury property developer Wing Tai came in second with total earnings of S$314.2 million, while Sim Lian Group ranked fourth with S$200.1 million. Commercial and residential property developer GuocoLand was fifth, with S$130.2 million in full-year earnings.
Terence Wong, Co-Head of Research at DMG & Partners Securities, said many developers had locked in earnings from real estate sales over the past few years, which have been resilient, in light of the government’s tightening measures to cool the property market.
He noted that the strong sales recorded by most developers will likely “bring them through over the next two-three years.”
“That is why many of them have been reluctant to slash property prices,” he said. “Many also have cash to spare, and some are trying to buy more land.”
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