Selangor Properties 3Q net profit dips 3.7%

KUALA LUMPUR (Sept 23): Selangor Properties Bhd's net profit for the third quarter ended July 31, 2016 (3QFY16) dropped 3.7% to RM42.98 million or 12.51 sen per share from RM44.64 million or 12.99 sen per share a year ago.

In a filing with Bursa Malaysia today, Selangor Properties showed an expansion of loss before tax in its property development segment and lower profit before tax in investment holding.

Revenue went up by 5.38% to RM26.23 million in 3QFY16 compared to RM24.89 million last year.

For the nine-month period ended July 31, 2016 (9MFY16), its net profit plunged 91% to RM9.96 million or 2.9 sen per share from RM109.86 million or 31.97 sen per share a year ago, while revenue rose 20.1% to RM86.48 million from RM72.01 million last year.

Moving ahead, Selangor Properties said its property investment is expected to remain stable and will continue to contribute positively to the group.

Its investment properties in Menara Milenium in Damansara Heights and Claremont Shopping Centre in Perth, Australia continue to enjoy high occupancy rates.

"The group plans to launch a high-end 18-storey condominium at Damansara Heights in the final quarter of 2016. It is unlikely that there will be any significant profit to be recognised for the current financial year," it said.

The group has suspended property sales in Bukit Permata because of poor market sentiments arising from unfavourable economic environment and continuing stringent bank lending guidelines to the purchasers.

Subject to market conditions, said Selangor Properties, the project might be relaunched in mid-2017.

"The proposed development of the Damansara Heights land bank is in its initial planning stage with considerations on designs that will provide integration and connectivity with the surrounding Mass Rapid Transit project," it said.

Barring unforeseen circumstances, Selangor Properties expects the operations in Malaysia and Australia to remain positive in 2016.

"However, in view of our overseas investments, fluctuations in foreign currency exchange will affect the group's profitability," it said.

Selangor Properties closed unchanged at RM4.60, valuing it at RM1.58 billion. — theedgemarkets.com

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