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IOI Properties 2Q net profit plunges 60% on lower overseas project contribution, impairment loss

KUALA LUMPUR (Feb 24): IOI Properties Group Bhd's net profit plunged 60% to RM109.14 million in the second financial quarter ended Dec 31, 2017 (2QFY18) from RM273.53 million a year ago, due to lower contribution from overseas projects in the property development segment and share of impairment loss in joint venture.

This resulted in lower earnings per share of 1.98 sen in 2QFY18 from 5.8 sen in 2QFY17. Quarterly revenue also fell 40.8% to RM707.44 million from RM1.19 billion.

In a filing with Bursa Malaysia yesterday, IOI Properties said excluding the share of impairment loss of RM79.7 million, the group's pre-tax profit of RM269.1 million for 2QFY18 was 32% lower than 2QFY17.

For the cumulative six months (1HFY18), the group's net profit fell 24% to RM351.99 million from RM463.1 million a year ago, while revenue dropped 24.7% to RM1.58 billion from RM2.09 billion.

Notwithstanding the challenging market conditions, IOI Properties said the group remains optimistic that properties in strategic locations across Malaysia and overseas will continue to draw prospective buyers.

"With unbilled sales of RM1.2 billion on hand, the group is expected to perform satisfactorily in the property development segment.

"Barring any unforeseen circumstances, the group is expected to continue to deliver satisfactory performance in FY18," it added.

IOI Properties shares fell 7 sen or 3.42% to close at RM1.98 yesterday, giving it a market capitalisation of RM11.07 billion. — theedgemarkets.com

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