GuocoLand posts first quarterly loss in four years on inventory write-down

KUALA LUMPUR (May 8): GuocoLand (Malaysia) Bhd (KL:GUOCO) slipped into its first quarterly net loss in four years despite a higher revenue, mainly due to a RM7.2 million inventory write-down for its PJ City project.

The property developer posted a net loss of RM6.21 million for its third quarter ended March 31, 2026 (3QFY2026), compared to a net profit of RM1.83 million a year earlier when earnings were boosted by higher-margin contributions from the Emerald Hills project following its vacant possession.

The weaker performance in 3QFY2026 was also due to additional rebates under new sales packages and a higher revenue mix from the lower-margin affordable segment of the Emerald 9 project in Cheras, according to the group's bourse filing on Thursday.

GuocoLand, which is seeking to be privatised, last reported a quarterly loss in 1QFY2022, when it recorded a net loss of RM7.98 million.

Revenue for the quarter under review rose 57.17% to RM151.77 million from RM96.57 million a year ago, driven by continued strong sales and progressive billings from Emerald 9, as well as higher unit sales at Oval KL and DC Residensi.

No dividend was declared for the quarter.

For the first nine months of FY2026 (9MFY2026), net profit fell 45.83% to RM6.56 million from RM12.11 million from the previous corresponding period, despite a 37.14% rise in revenue to RM425.31 million from RM310.13 million.

Looking ahead, GuocoLand said it will focus on timely completion of ongoing developments and clearing completed inventory to improve cash flow and redeploy capital into future projects.

The group noted that escalating conflicts in the Middle East are beginning to exert inflationary pressure on construction and operating costs, as well as business confidence, but said it is monitoring the situation closely and will implement mitigation measures as needed.

GuocoLand is set to be privatised by its controlling shareholder, GLL (Malaysia) Pte Ltd, through a selective capital reduction and repayment at RM1.10 per share. The proposal announced on Feb 3 will be tabled for shareholders’ approval at an extraordinary general meeting on May 29. 

Shares of GuocoLand closed unchanged at RM1.08 on Thursday, valuing the property arm of Hong Leong Group at RM756.5 million.

..........

EdgeProp's monthly print edition is out! Free delivery is available for selected regions. Subscribe now.