Guocoland 2Q profit jumps on land sale

KUALA LUMPUR (Jan 19): Gain from one land sale has lifted Guocoland (M) Bhd’s net profit to RM110.8 million, or 16.54 sen per share, for the second financial quarter ended Dec 31, 2016.

To recap, Guocoland’s associate Vintage Heights Sdn Bhd completed the disposal of the 679.2 hectare piece of land worth RM474.99 million in Sepang, Selangor, to Putrajaya Properties Sdn Bhd on Dec 8 last year.

The profit is in contrast to a net loss of RM7.47 million, or 1.12 sen per share, in the previous corresponding financial quarter.

Its quarterly revenue grew 23.9% to RM44.63 million from RM36.01 million in the same period on the back of “higher contribution from the residential project in Damansara City, commercial projects in PJ City and Old Klang Road”, it said in a bourse filing yesterday.

For the six-month period ended Dec 31, 2016, Guocoland’s posted net profit of to RM111.08 million or 16.58 sen per share, up 701.8% from RM13.85 million or 2.07 sen per share in the previous corresponding period. Its revenue, however, dropped 8.12% to  RM98.15 million from RM106.81 million previously.

Looking forward, Guocoland expects a challenging year ahead. “The group will continue to focus on its core activities, timely completion of its development projects as well as monetise its inventories,” it said in the financial result announcement. — theedgemarkets.com