Higher profit from associates boosts Guocoland Malaysia profit in 2Q

• For the cumulative six-month period (1HFY2023), the property developer posted a net profit of RM10.1 million versus a net loss of RM4.22 million in the previous corresponding period, while revenue grew 31% to RM183.7 million from RM140.68 million.

KUALA LUMPUR (Feb 14): Guocoland (Malaysia) Bhd's net profit more than doubled for the second financial quarter ended Dec 31, 2022 (2QFY2023) driven by higher share of associates and joint ventures' profit, coupled with wider profit margin in two property development projects in Cheras.

Net profit jumped to RM8.53 million for 2QFY2023 from RM3.76 million a year ago, despite a 27% drop in revenue to RM76.88 million from RM105.55 million, no thanks to fewer ongoing projects after delivery of vacant possession for the two Cheras projects in the previous quarter, said Guocoland in a filing with Bursa Malaysia yesterday.

For the cumulative six-month period (1HFY2023), the property developer posted a net profit of RM10.1 million versus a net loss of RM4.22 million in the previous corresponding period, while revenue grew 31% to RM183.7 million from RM140.68 million.

Going forward, Guocoland said the domestic property sector remains challenging in an environment of higher interest rates, persistent inflation reducing the purchasing power and an overhang of excess property inventory in several market centres and property classes.

“The group will continue to focus on monetising its inventories and progressing its development projects for timely completion.

“New product launches will be phased according to prevailing market conditions. The group remains alert to seek out opportunities to increase its landbank,” it said.