KUALA LUMPUR (Aug 29): Penang-based Ivory Properties Group Bhd's net profit fell 13.4% to RM5.7 million or 1.28 sen per share in its first quarter ended June 30, 2016 (1QFY17) from RM6.6 million or 1.48 sen per share.

In a filing with Bursa Malaysia today, Ivory said the higher profit in 1QFY16 was due to one-off disposal gain of its subsidiary Soju Entertainment Sdn Bhd for RM6 million.

Revenue for 1QFY17 came in 30% higher at RM61.7 million compared to RM47.4 million a year ago, it said while pointing out that property development revenue was largely from ongoing projects such as City Residence and City Mall, and Penang Times Square phases three and four.

"Revenue and pre-tax profit from construction division improved during the current quarter as compared to previous corresponding quarter as the construction work at Penang WorldCity intensifies.

"Share of results of the group's joint venture company (JVCo) showed significant improvement from RM300,000 in previous corresponding quarter to RM10 million in 1QFY17. The subsequent share of results of the JVCo is expected to contribute substantially to the group's performance of the year," it said.

Ivory said the property market remains sluggish with challenging economic environment globally and domestically.

Nevertheless, with significant sales lock-in in the financial year ended March 31, 2016 (FY16), the ongoing development activities of these projects would contribute positively to its earnings.

Barring unforeseen circumstances, the board envisages satisfactory results for FY17.

At 2.54pm, Ivory fell half sen to 40 sen with 272,000 shares transacted, valuing it at RM198.48 million.

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