GuocoLand 4Q net profit down y-o-y after asset sale last year

KUALA LUMPUR (April 19): GuocoLand (Malaysia) Bhd saw a 38% decline in net profit for its third financial quarter ended March 31, 2017 (3QFY17) to RM8.34 million from RM13.35 million a year ago, which it attributed to a high base effect after it sold a piece of land on Jalan Kia Peng last year.

The lack of disposal gain was also why revenue slipped by 36% year-on-year (y-o-y) to RM92.14 million from RM143.47 million, besides lower contribution from residential projects in Damansara, said the company.

“This was partially offset by higher contribution from the residential project in Oval and commercial projects in Petaling Jaya,” it added.

In the nine months ended March 31 (9MFY17), net profit was over three-fold higher at RM119.42 million from RM27.21 million a year ago, as it registered gains from the disposal of its 679.2-ha land worth RM474.99 million in Sepang, which it completed in the previous quarter.

Revenue, however, was 24% lower at RM190.3 million compared with RM250.28 million a year ago.

With a subdued property market expected ahead, GuocoLand said it will focus on “monetising its inventories, leasing out its vacant spaces and timely completion of its development projects”.

“The group will be opportunistic in seeking for prime landbank that can offer meaningful and sustainable returns on our investments,” it added.

At market close today, shares of GuocoLand was one sen or 0.76% lower at RM1.31, giving it a market capitalisation of RM917.6 million. — theedgemarkets.com

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