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IOI Properties 4Q net profit jumps 169%, declares two sen dividend

KUALA LUMPUR (Aug 27): IOI Properties Group Bhd posted a net profit of RM118.37 million for the fourth quarter ended June 30, 2021, a 169% jump from RM44.06 million in the previous year’s corresponding quarter, amid higher share of results from joint ventures.

Revenue for the quarter increased 8% to RM658.65 million from RM610.47 million a year earlier.

The group declared an interim dividend of two sen per share for the financial year ended June 30, 2021.

Based on its financial statements, IOI Properties saw a higher share of results from joint ventures of RM174.32 million for the quarter, as well as lower taxation which contributed to the higher net profit.

However, its operating profit dropped 48% to RM174.8 million due to lower contribution from overseas projects in the property development segment.

The property development segment recorded revenue of RM579.8 million for the quarter, higher by RM35.2 million year-on-year amid a 238% increase in contribution by its Malaysia operations to RM420.8 million, partly offset by lower contribution from the China operations due to lower sales.

The property investment segment posted a 6% increase in revenue to RM57.5 million and a 3% increase in operating profit to RM18.3 million, amid higher rental relief assistance to tenants in the preceding year’s corresponding quarter.

Meanwhile, the hospitality and leisure segment posted a 93% surge in revenue and a 43% contraction of operating loss.

For the cumulative 12 months ended June 30, IOI Properties’ net profit rose 31% to RM660.21 million from RM504.7 million, while revenue increased 18% to RM2.49 billion from RM2.12 billion.

In its prospects, the group said the global business environment remains challenging and uncertain amid the pandemic.

“Domestically, the prolonged lockdown in Malaysia to curb the spread of Covid-19 remains a dampening factor to our national economic recovery. However, we remain positive that the successful rollout of the accelerated vaccination programme by the Government will enable all sectors of the economy to bounce back by the end of 2021.

“The group will continue to leverage on our digital marketing capability, aggressive sales campaigns and on the recently extended Home Ownership Campaign under the National Economic Recovery Plan (PENJANA) to drive sales of our mid-priced range of products in tandem with market demand,” it said.

In China, the group’s residential developments in IOI Palm City, Xiamen, has been completed during the quarter, it said, adding that the developments in the country will continue to contribute to its financial performance next year.

In Singapore, the stricter measures to counter the recent resurgence of Covid-19 has affected the construction progress of the IOI Central Boulevard Towers development, although it expects a quick recovery in construction progress based on the high rate of vaccination of the population.

“Overall, we expect the operating environment to remain challenging. Nevertheless, the group will continue with its prudent and professional management approach to ensure delivery of satisfactory performance in the coming financial year whilst improving its market position and strengthening its competitive edge to seize any opportunities that may emerge,” said the group.

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