- The group in a filing with Bursa on Aug 18 said it also saw a lower share of results of associates and joint ventures in the current quarter, mainly due to a share of loss in an associated company resulting from fair value loss on its investment properties.
- Revenue declined by 19.64% to RM138.28 million from RM172.08 million a year before due to lower contribution from its property division.
KUALA LUMPUR (Aug 18): Property developer GuocoLand (Malaysia) Bhd’s net profit fell 33.6% to RM15.8 million or 2.36 sen per share in its fourth quarter ended June 30, 2023 (4QFY2023) from RM23.79 million or 3.55 sen per share a year earlier, mainly due to lower contribution from its property development division.
During the quarter under review, it also booked a one-off land disposal located in Mukim and District of Jasin, Melaka that contributed revenue of RM19 million and profit before tax of RM12.7 million.
The group in a filing with Bursa on Aug 18 said it also saw a lower share of results of associates and joint ventures in the current quarter, mainly due to a share of loss in an associated company resulting from fair value loss on its investment properties.
Revenue declined by 19.64% to RM138.28 million from RM172.08 million a year before due to lower contribution from its property division.
“The lower performance from the property development division was mainly due to the lower percentage of completion achieved for the first phase of Emerald 9 in Cheras as it nears completion and fewer ongoing projects as the vacant possession of Garden Terrace and South Tower phases of Emerald Hills in Cheras had been delivered in the first quarter of the financial year ended 30 June 2023,” the group said.
The group has declared a final single-tier dividend of two sen per share, payable on Nov 15, 2023.
For the full year of FY2023, its net profit, rose 31.59% to RM34.61 million from RM26.3 million a year before, mainly due to the one-off land disposal and lower losses from the hospitality and property investment divisions.
Revenue was flat at RM434.35 million from RM434.07 million a year ago.
It said the improved performance for FY2023 was partially offset by lower contribution from the property development division.
It said the better performance in the property investment division in the current financial year came largely from the increased occupancy in its DC Mall as activities and business confidence were boosted by the recovery momentum post pandemic.
The performance of the hospitality division also saw improvement with higher occupancy and better average room rates in line with the encouraging rebound in social and travel activities, it added.
Moving forward, Guocoland said the domestic property sector outlook remains overcast amid higher interest rates, persistent inflation reducing the purchasing power and an overhang of excess property inventory in several market centres and property classes.
For Guocoland’s operation, it 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 added.
Share price in Guocoland closed unchanged at 69 sen, giving the group a market capitalisation of RM483 million.
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