KUALA LUMPUR (May 30): TA Enterprise Bhd posted a net profit of RM83.22 million in its first quarter ended March 31, 2017 — its third consecutive profitable quarter — thanks to higher contribution from its broking, investment holding and hotel operation divisions.

In comparison, the group recorded a net loss of RM80.37 million in the same quarter last year.

Revenue, meanwhile, grew 55% year-on-year to RM307.36 million from RM198.29 million.

"Profit before tax (PBT) of the broking and financial services division increased from RM5 million in the previous year's first quarter to RM10.5 million in the current year's first quarter," said the group, adding that the rise is mainly due to higher brokerage income.

Meanwhile, its investment holding division saw a turnaround with a PBT of RM53.9 million, from a loss before tax of RM106.5 million in 1QFY16, due to foreign exchange gains and the absence of fair value loss on its investment securities.

Refurbishment for its hotels — namely Movenpick Resort, Phuket, Swissotel Merchant Court, Singapore and Radisson BLU Plaza, Sydney — was completed last year, resulting in higher occupancy rate across all hotels, said TA Enterprise. The division's net profit jumped 43% y-o-y to RM31.1 million.

Moving forward, TA Enterprise said it is "hopeful" that trading volume, value and activities in Bursa Malaysia will improve slightly to sustain its FY16 performance this year.

Additionally, it plans to increase its fee-based and proprietary activities, while looking out for strategic locations to grow its branch network.

Meanwhile, it expects a challenging year for its credit and lending division, as well as its property development division, but said the hotel operations should generate improved results following the upgrades mentioned.

"The group will continue to explore and evaluate opportunities to acquire new hotels or properties to expand our existing portfolio and to enhance revenue contribution from our hospitality business," it added.

At 5pm yesterday, TA Enterprise shares closed 1.5 sen or 2.11% lower at 69.5 sen, valuing the company at RM1.2 billion. — theedgemarkets.com

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

  1. Rehda Institute’s Singapore study trip offers learning opportunity for local industry players
  2. The REAL deal: Is Singapore property tax hike a boon for Malaysia?
  3. Resilient demand for Sunway's and IOI Properties' projects in Singapore despite property cooling measures, says HLIB