Cedar Woods Properties Limited (ASX: CWP) is into the business of real estate development for residential housing as well as commercial projects in the regions of Australia.
Cedar Woods Properties has lately released the 1H FY2019 report for the period which ended on 31 December 2018. As per the report, first-half NPAT of $30.8 million was significantly higher than the pcp, with revenue at $204 million, up 268 per cent on the pcp, due to a significant increase in settlement volume, including settlement of the $58 million Target Head Office at Williams Landing. The gross margins remained a robust 31 per cent.
Pre-sales at the end of the first half stood at $358 million, driven by sales activity across the national portfolio, and 6 per cent higher than the pcp. About half of these pre-sales are expected to settle in FY19 with the balance positioning the business well for FY20.
The Board of directors have declared a 100% franked interim dividend of 18.0 cents per share, up 50 per cent on pcp. The Board intends to maintain the policy of distributing approximately 50 per cent of full-year net profit to shareholders via dividends, with the increased interim dividend reflecting the strong first half result and taking account of available franking credits.
The company’s position statement remains robust with net bank debt-to-equity of 37 per cent as of 31 December 2018, and substantial undrawn capacity under current bank facilities available to fund future growth.
The company’s Managing Director, Nathan Blackburne has said that the management is pleased with the progress across the business in what has been a more challenging market. The pre-sales across its national portfolio will see the company generate revenue from four states for the first time in FY19, reflecting the company’s commitment to a strategy of diversification by geography, product and price point.
As regards to the outlook, the management feels that while property market conditions remain challenging nationally, the company has seen good sales across the portfolio in the first half, with significant pre-sales to be carried into future financial periods. Consistent with previous guidance, first-half earnings will be the stronger of the two halves, and management continues to anticipate a substantial uplift in full-year net profit in FY19. Also, Many new projects are expected to contribute to earnings from FY20, including 107 Overton Road and 101 Overton Road (VIC), Gardenia Apartments at Jackson Green (VIC) and Port Adelaide (SA).
Now, let’s have a glance at the company’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $5.380, up by 5.906 % during the day’s trade with a market capitalisation of ~$407 Mn. The counter opened the day at $5.120, reached the day’s high of $5.490 and touched the day’s low of $5.120 with a daily volume of ~146,283. The stock has provided a Year Till Date return of 3.67% & also posted returns of -16.86%, -3.24% & 8.78% over the past six months, three & one-months period respectively. It had a 52-week high price of $ 6.640 and touched 52 weeks low of $ 4.520, with an average volume of 42,793 approximately.
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