Selangor Dredging's 1Q net profit plunges 79%

KUALA LUMPUR (Aug 26): Selangor Dredging Bhd (SDB) saw its net profit plunge 79% to RM4.6 million or 1.08 sen per share for the first financial quarter ended June 30, 2016 (1QFY17), from RM21.49 million or 5.04 sen per share in 1QFY16, due to a gain of RM13.69 million from the disposal of land in the corresponding quarter of the previous year.

Revenue for the quarter fell 4% to RM61.35 million, from RM64.11 million in 1QFY16.

In a filing with Bursa Malaysia today, SDB attributed the lower quarterly revenue to completion of the group’s Windows On The Park project in Bandar Tun Hussein Onn here.

Going forward, the group expects the remainder of its financial year to be challenging, considering the generally softer economic sentiment, weaker ringgit and the tighter lending policies by financial institutions.

“In review of [the] above mentioned factors, the group foresees the property market to remain challenging for the second half of the year,” said SDB, adding it has launched various marketing schemes to face the headwinds.

The group said it has approximately RM351 million in unbilled sales.

SDB shares gained 6.5 sen or 7.14% to close at 97.5 sen today, giving it a market capitalisation of RM415.47 million. — theedgemarkets.com

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