Residential property developer Cedar Woods Properties Limited (ASX: CWP) has reported a strong set of interim results for the six months ending December 31, highlighting the tailwind benefits of a strong domestic new housing market.
Here are the key financial details:
- Revenue slipped 1.1% to $77 million
- Net profit after tax soared 100% to $18.1 million thanks to higher margin projects
- Earnings per share up 98% to 23 cents per share (cps)
- Fully franked interim dividend maintained at 12 cps (payment due on April 29)
- Net tangible asset backing per share grew to $3.69
- Net debt of $75 million
Outlook
Cedar Woods announced that it would expand the Williams Landing Shopping Centre at a cost of $6.5 million, which will include a child care facility and further retail space – this asset provides an additional revenue stream to the group and potentially a tidy profit should it be sold.
Cedar Woods also advised that it achieved pre-sales of $176 million, of which the majority are anticipated to settle in the second half.
The company has provided guidance for a record profit of $43 million for the full year.
Despite offering an attractive fully franked dividend yield and trading on a low multiple, Cedar Woods' shares have failed to attract buying support today with the stock slipping 2% to $4.01 just before lunchtime.
It's a similar state of affairs for peers such as Villa World Ltd (ASX: VLW), Devine Limited (ASX: DVN) and Avjennings Ltd (ASX: AVJ) which are all also trading towards their 52-week lows and in what could be described as value territory.
