I-Bhd's 3Q net profit slips 12.7%; stays confident of commendable FY17 results

KUALA LUMPUR (Oct 23): Property developer I-Bhd posted a 12.7% drop in net profit at RM19.6 million in its third quarter ended Sept 30, 2017 (3QFY17) compared to RM22.4 million last year.

Quarterly revenue slipped 7.3% to RM105.3 million from RM113.6 million a year ago, the group said in a filing with Bursa Malaysia today.

Earnings per share for the quarter stood at 1.85 sen per share versus 2.11 sen per share in 3QFY16.

For the cumulative nine months (9MFY17), I-Bhd's net profit rose 10.2% to RM57.8 million from RM52.5 million last year on the back of RM336 million revenue, up 19.7% compared to RM280.7 million in 9MFY16.

I-Bhd said revenue and profit before tax in its property development segment for 9MFY17 was higher compared to last year due to further sales from existing projects in i-City and advancement of the construction progress.

Property investment segment revenue for 3QFY17 was comparable to 3QFY16 but maintenance cost for investment properties had risen due to the completion of construction of investment properties it held during the financial period.

The leisure segment showed favourable results in 9MFY17 because of better cost management.

Moving forward, the group said the property development segment would see better financial performance from the progressive completion of projects and continuous sales from ongoing projects for the financial year ending Dec 31, 2017 (FY17).

Its unbilled sales is RM303.3 million as at Sept 30, 2017 compared to RM334.7 million three months before that.

"The slight drop is due to the completion of i-SOHO project. The success of Hill10 and continuous sale of ongoing projects would help maintain the unbilled sales around this level by the end of the year," it added.

Barring any unforeseen circumstances, the board is confident that I-Bhd would achieve commendable operating results for FY17.

At 12.30pm, its shares remain unchanged at 56.5 sen with 210,000 shares done for a market capitalisation of RM569.5 million. —

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