KUALA LUMPUR (June 22): YNH Property Bhd’s net profit slipped to RM3.01 million for the first quarter ended March 31, 2020 (1QFY20), down almost 59% from RM7.28 million a year earlier, on slower project progress and impact on the group's hospitality arm as a result of the Covid-19 pandemic.

Quarterly revenue shrank to RM66.59 million from RM74.8 million previously, the group said in its results filing with Bursa Malaysia today.

“Project site has ceased progress after the Movement Control Order (MCO) was enforced on March 18. The group's performance for this year is mainly derived from profit recognition from sales of inventories in Pangsapuri Samudera and progressive profit recognition of Kiara 163,” it said.

Going forward, YNH said the local and global economic climate remains challenging due to the uncertainties caused by Covid-19 crisis.

In light of this, the group said it has taken countermeasures and complied with the strict standard operating procedures on hygiene and sanitisation for offices, project sites and retail malls to lessen the impact of MCO. This allows the group to be able to catch up with the progress of the respective sectors, it added.

“In addition, the stimulus package announced by the government, including the reduction of overnight policy rate and re-introduction of house ownership campaign will make home ownership more affordable. As such, the board is cautiously optimistic that demand for property will be sustainable, given the strategic location and correct pricing of our properties,” it noted.

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