Yong Tai turns profitable in 1QFY23

• The tourism-related property developer saw earnings per share of 0.57 sen compared to a loss per share of 0.41 sen, its bourse filing on Wednesday (Nov 23) showed.

KUALA LUMPUR (Nov 23): Yong Tai Bhd started its financial year ending June 30, 2023 (FY23) with a net profit of RM1.81 million for the first financial quarter ending Sept 30, 2022 (1QFY23), from a RM5.56 million net loss posted in the same period last year, mainly due to contribution from improved sales of completed units.

The tourism-related property developer saw earnings per share of 0.57 sen compared to a loss per share of 0.41 sen, its bourse filing on Wednesday (Nov 23) showed.

Quarterly revenue jumped ten-fold to RM49.39 million from RM4.86 million in the same period a year ago mainly on stronger revenue contribution from its property development segment, besides being supported by the group’s property investment segment.

On a quarter-on-quarter basis, Yong Tai returned to profitability compared to a net loss of RM135.34 million posted in 4QFY2022 as revenue grew by 6.82% from RM46.24 million recorded in the immediately preceding quarter.

On prospects, Yong Tai said it secured additional sales of RM66 million in 1QFY2023, with the improved sales coming from the group’s effort to focus on selling completed property units.

In a separate statement, Yong Tai chief executive officer and executive director Datuk Wira Boo Kuang Loon said the return to profitability amid the uncertainties and challenges faced by the group represents a turnaround point for Yong Tai, as the reopening of the economy helped the group to deliver its ongoing property development projects.

As of Sept 30, 2022, Yong Tai has total unbilled revenue of RM148 million, and with Impression U-Thant on track for completion by the first quarter of next year, the group’s property development business will sustain earnings growth in the near term.

Despite the improvement in its financial performance, Boo noted the group will continue to be prudent on new property development launches as the management acknowledges that the property market remains uncertain and will continue to face challenges such as geopolitical instability, supply chain disruption, interest rate hikes and inflation.

Yong Tai’s share price settled on Wednesday unchanged at 20 sen, bringing the group a market capitalisation of RM75.62 million.