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Goldis 1Q earnings double on sale of Renaissance KL

KUALA LUMPUR (May 26): Goldis Bhd saw its net profit more than doubled to RM73.17 million or 12.03 sen per share for first quarter ended March 31, 2017 (1QFY17), thanks to a one-off disposal gain from the sale of Renaissance Kuala Lumpur (KL) Hotel.

It registered a net profit of RM31.01 million or 5.10 sen per share in 1QFY16.

In its quarterly report to Bursa Malaysia, the group said revenue was lower in 1QFY17 because it has not launch any new development projects in view of the weak sentiment in the property sector, coupled with decrease in contribution from hotel businesses after the disposal of three hotels, namely, Cititel Express Kuala Lumpur, MiCasa Hotel Apartment, Yangon, in 2016 and Renaissance KL this year.

Goldis quarterly revenue fell 7.7% to RM281.55 million, from RM304.91 million last year.

Moving forward, while the group acknowledged that 2017 will be a challenging year, it is still expecting satisfactory performance.

"The property investment (retail and commercial) segment will be more challenging in the short term with the increase in the supply of new retail space and decrease in demand for office space in Kuala Lumpur," Goldis said, adding that 2017 will be a difficult year for its property development segment as well.

Nonetheless, with the disposal gain from the sale of Renaissance KL, the group said its hotel businesses' performance would be better than FY16.

Goldis' share price remained unchanged at RM3 yesterday, giving it a market capitalisation of RM608.50 million. Year to date, the counter has appreciated by 23% from RM2.44 on Jan 5 this year. — theedgemarkets.com

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