Haus Talk Q1 net income down 26% y/y
Haus Talk [HTI 0.96 1.0%; 57% avgVol] [link] reported a Q1 net income of P34 million, down 26% y/y from its Q1/22 net income of P46 million.
HTI’s total revenues were down 18% to P157 million, which HTI attributes to selling fewer housing units as compared to the previous year.
More helpfully, HTI specified that the miss in revenue could be due to the delays in its The Granary development in Laguna which will cause some of the revenue for that project to be realized later in the year.
Unfortunately for HTI, they had already incurred some of the increased costs associated with trying to sell those units during Q1.
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HTI burst onto the scene in January of last year with an IPO price of P1.50/share and a lot of big dreams for growing its profits through affordable housing.
HTI has (largely) done what it set out to do by purchasing large lots and developing them, but some delays have pushed the revenue recognition of one of those projects out a few months, and HTI is too small of a company for that change not to absolutely blow up the quarter.
I feel like this is less about HTI “doing bad” at real estate, and more about HTI just being a smaller developer and hitting a snag on timelines.
IPO buyers are down 35%, though, and are probably thinking it’s just about time to start seeing some bigger results from the proceeds of the listing.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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