Plenitude's property business lifts net profit 26% higher in 4Q

KUALA LUMPUR (Aug 23): Plenitude Bhd's net profit in the fourth quarter ended June 30, 2017 (4QFY17) rose 25.5% to RM20.4 million from RM16.26 million a year ago, on contribution from its property development segment, which remains as the group's key contributor at 70%.

Revenue was at RM62.6 million, up 30% from RM48.3 million.

In a filing with Bursa Malaysia, Plenitude said the contribution came mainly from the Bintang Maya double-storey terrace house project in Kedah as well as the Taman Putra Prima Phase 2C Aquamarine double- and triple-storey terrace house project in Selangor, which is now in advanced development stage.

As for its hotel operations segment, Plenitude said the division registered a revenue of RM18.7 million in 4QFY17, versus RM13.2 million a year earlier, boosted by improved occupancy as well as revenue from the Oakwood Hotel & Residence Kuala Lumpur, which reopened for business in the second quarter of 2017 (2Q17).

For the full financial year ended June 30, 2017 (FY17), Plenitude's net profit came in at RM50.74 million, 0.6% higher from the RM50.44 million recorded in FY16.

Full-year revenue, meanwhile, grew 2.7% to RM226.2 million from RM220.15 million.

On outlook, Plenitude said the property market is expected to experience slower growth amid global, regional and national economic uncertainties and cautious market sentiments.

"In spite of this, properties in good locations are expected to continue to draw property buyers. The hotel business is expected to remain challenging. In view of the above, the board of directors expects a challenging performance for the financial year ending June 30, 2018," it said.

Plenitude settled 1.8% or 3 sen lower at RM1.62, bringing its market capitalisation to RM629.53 million. — theedgemarkets.com

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