Tropicana 2Q net profit up 3% amid higher progress billings

KUALA LUMPUR (Aug 23): Tropicana Corp Bhd’s net profit rose 3% to RM39.02 million for the second quarter ended June 30, 2019 (2QFY19), from RM38 million a year ago. Revenue grew 6% to RM299.45 million from RM281.43 million previously.

The group attributed the revenue growth to higher progress billings across some of its key ongoing projects.

It recorded a one-off fair value gain of RM30.2 million in the preceding year, which had partly offset the growth of its bottom line.

For the first half of FY19 (2HFY19), net profit rose slightly to RM85.09 million from RM84.4 million, while cumulative revenue fell 31% to RM509.22 million from RM734.43 million.

Looking ahead, the group said it is well positioned to deliver sustainable earnings, pointing out that its unbilled sales stood at RM830.6 million as at the end of June, across 14 ongoing projects.

Moreover, the group has over 1,071 acres (433.4ha) of prime land located at strategic locations in the Klang Valley, Genting and the southern regions of the peninsula with a total gross development value (GDV) of RM48.6 billion.

Despite the challenging global and domestic environment, Tropicana said there will still be demand for landed properties and integrated developments in prime locations with good accessibility, wider range of amenities and attractive pricing.

“In this regard, Tropicana will continue to focus on its market-driven strategy for 2HFY19, rolling out a series of new projects amounting to a GDV of approximately RM3 billion within its existing and new signature townships which are expected to drive stronger performance and bring the group to its next phase of growth,” it said.

This article first appeared in The Edge Financial Daily, on Aug 23, 2019.

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