SML Profit Plummets for the Period Ended December 31, 2019

  • Stanley Motta Limited (SML) reported audited net profits of $281.29Mn (EPS:37¢) for the year ended December 2019, representing a 85.9% (or $1.72Bn) decrease in its bottom line relative to the corresponding period in 2018.
  • The main contributor to this performance was a 9.72% (or $1.85Bn) reduction in revaluation gains. This was due to a one-off gain being booked upon the revaluation of the company’s properties during the prior year.  Excluding this one-off gain net profit would have grown $131.76Mn (135.5%), courtesy of a $150.09Mn (or 55.5%) growth in revenue.
  • The stock has declined 15.6% since the start of the year, and closed trading at $5.03 on Monday. At this price, SML currently trades at a P/E of 13.6x earnings, which is above the Main Market Real Estate Sector Average of 11.5x.

(Source: SML Financials)