Plenitude registers 13% drop in 3Q earnings

KUALA LUMPUR (May 25): Property developer cum hotel operator Plenitude Bhd saw its third quarter ended March 31, 2017 (3QFY17) net profit declined by 13% to RM12.16 million or 3.2 sen per share, from RM13.96 million or 3.7 sen per share a year ago due to the absence of contribution from a semi-D project in Tebrau, Johor, which was completed last year.

In its quarterly result announcement to Bursa Malaysia, Plenitude noted that its hotel operations' revenue was 2% lower for 3QFY17 compared to the corresponding quarter of the previous year.

The group's revenue for 3QFY17 fell by 3.27% to RM64.25 million, from RM66.42 million.

Cumulatively, Plenitude's net profit for the nine-month period (9MFY17) fell by 11.26% to RM30.33 million or eight sen per share, from RM34.18 million or nine sen per share in the same period last year, while revenue was 4.81% lower at RM163.58 million, from RM171.84 million in 9MFY16.

Moving forward, the group said the property market is expected to experience slower growth amidst global, regional and national economic uncertainties and cautious market sentiments.

"The hotel business is expected to remain challenging as well. In view of the above, the board of directors expects a challenging performance for FY17," it said.

Plenitude's share price gained four sen or 2.44% to close at RM1.68 yesterday, giving it a market capitalisation of RM633.35 million. — theedgemarkets.com

For more stories, download TheEdgeProperty.com pullout here for free.