• Revenue from its property development segment jumped by 163% to RM137.88 million from RM52.49 million. Profit before tax (PBT) also shot up 382% to RM41.22 million from RM8.56 million.

KUALA LUMPUR (Oct 25): Oriental Interest Bhd (OIB) recorded a more than five-fold jump in net profit to RM27.64 million or 5.95 sen per share for the fourth quarter ended Aug 31, 2022 (4QFY22), from RM5.12 million or 1.37 sen per share in the previous year’s corresponding quarter.

It declared an interim single tier dividend of five sen per share, to be paid on Dec 30.

OIB’s quarterly revenue for the quarter surged 155% to RM154.66 million, from RM60.74 million.

“The return to new normal concurrent with the country’s transition to the endemic phase of the unprecedented Covid-19 pandemic has been a shot in the arm for the property development industry.

“Drawing on its broad-based communication channels from social media platforms, 3D virtual viewings, to a return to the traditional in-person engagements, the group has successfully capitalised on the strong demand driven by value proposition of its properties to convert interest into tangible sales,” said OIB in a filing.

Revenue from its property development segment jumped by 163% to RM137.88 million from RM52.49 million. Profit before tax (PBT) also shot up 382% to RM41.22 million from RM8.56 million. OIB said the huge improvements in performance were driven by sales and marketing efforts, as well as recognition of cost savings on certain completed projects and the higher receipt of government grants.

Meanwhile, OIB’s general construction segment, which is the group’s in-house construction arm, saw its revenue grow 119% to RM13.44 million from RM6.12 million, while PBT rose 79% to RM636,000 from RM356,000.

Revenue for the oil palm cultivation segment increased 23% to RM1.53 million from RM1.245 million, while PBT grew 36% to RM969,000 from RM714,000 due to better harvest and higher prices of crude palm oil.

For the full year (FY22), OIB posted a 44.6% jump in net profit to RM78.27 million from RM54.115 million, as revenue rose 37.2% to RM475.7 million from RM346.795 million.

Despite challenging operating conditions beset by tight lending policies, continued labour shortage and rising costs in the construction industry, as well as higher lending rates and inflation with financial and social implications, the group’s new properties continued to be well received by purchasers, said OIB.

Moving forward, OIB said it is ramping up its preparation to launch approximately 5,000 homes that embody the group’s value proposition for its residential properties.

OIB shares were unchanged at 95 sen on Tuesday (Oct 25), giving it a market capitalisation of RM441.35 million.

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