I-Bhd 3Q net profit down 21% on lower property segment contribution

KUALA LUMPUR (Nov 7): I-Bhd has posted a 21% drop in net profit to RM5.69 million for the third quarter ended Sept 30, 2018 compared to RM7.17 million a year ago on lower property development revenue, and cautioned it expects the last quarter to be challenging as well.

Earnings per share slipped to 0.54 sen from 0.68 sen, while revenue was down 19% to RM60.66 million from RM75.31 million a year ago.

For the cumulative nine months, net profit rose 6% to RM52.49 million from RM49.3 million previously, while revenue increased 4% to RM327.18 million from RM315.7 million a year ago.

In an exchange filing today, the group explained revenue was lower in the current quarter because in the comparative quarter last year, it had launched Hill10 Residence development which had been well received by prospective home buyers.

It plans to adopt a cautious approach in the coming months as it expects a challenging market for the property development segment.

It said the operating performance of the group will be challenging for the remaining quarter of the financial year despite the group's continuous efforts which includes a focus on enhancing i-City development and improving the living experience.

Emphasis will also be on the ongoing development of its investment properties, namely Corporate Office Tower, Double Tree by Hilton and second Convention Centre, which will contribute recurring income stream to the group in the near future.

I-Bhd's unbilled sales as at Sept 30 stood at RM160.7 million compared to RM305.4 million as at June 30.

At 2.35pm, shares of I-Bhd were unchanged at 47 sen, for a market capitalisation of RM474.56 million. — theedgemarkets.com

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