GuocoLand's 1Q net profit triples to RM4.8 mil on higher property development and hospitality contribution

• Looking ahead, the group acknowledged challenges in the domestic property sector due to higher interest rates, ongoing inflation and an oversupply of properties in different markets and segments.

KUALA LUMPUR (Nov 10): Property developer GuocoLand (Malaysia) Bhd's net profit surged threefold to RM4.79 million in its first quarter ended September 30, 2023 (1QFY2024) from RM1.57 million a year ago, attributed to overall improvement in the property development and hospitality divisions.

The group also recorded lower finance costs resulting from reduced outstanding loans and borrowings, despite the rise in interest rates.

Quarterly revenue rose by 16.25% to RM119.15 million from RM102.49 million.

The improvement in the group's hospitality division was contributed by higher occupancy rates and average room rates as a result of increased tourist arrivals and enhanced domestic commercial and social activities.

“The share of results of associates and joint ventures reported higher profit recognition from the construction progress of our active projects in Rawang and the completion of Mallow Lakepark Homes in the current quarter," it added.

Nonetheless, on a quarterly basis, GuocoLand’s net profit was lower compared with RM15.8 million in 4QFY2023, as there was a disposal of a land parcel in Jasin, Melaka in the immediate preceding quarter.

Looking ahead, the group acknowledged challenges in the domestic property sector due to higher interest rates, ongoing inflation and an oversupply of properties in different markets and segments.

The group's strategies remain focused on monetising its inventories, advancing development projects for timely completion and introducing new products in line with prevailing market conditions. Furthermore, the group remains vigilant in seeking opportunities to expand its land bank.

GuocoLand's shares closed unchanged at 72 sen on Friday, giving the group a market capitalisation of RM504.33 million.

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