Bandar Raya records Q2 profit of RM23mil

KUALA LUMPUR: Bandar Raya Developments Bhd's pre-tax profit for the second quarter ended June 30, 2011 dropped to RM23.210 million from RM94.085 million in the corresponding quarter last year.

In a filing with Bursa Malaysia, it said the decline was due to the RM82.7 million gain from adjustment to fair value of the Bangsar Shopping Centre (BSC) in 2010 which when excluded, would make the second quarter group pre-tax profit
of RM23.2 million this year twice that of last year’s results.

Its revenue rose to RM198.897 million from RM151.361 million, with higher revenue reported in both property and manufacturing divisions. Revenue from the property division rose 12 per cent to RM119.4 million from RM106.3 million in the same quarter a year ago, due to more sales of Troika and 6 CapSquare in Kuala Lumpur as well as progress income recognition from Straits View Residences in Johor, it said.

For the six-month period, its pre-tax profit fell to RM31.028 million from RM127.398 million in the corresponding period of 2010, while revenue increased to RM336.082 million from RM341.165 million. On prospects, it said amidst a stalled global economic recovery, the Malaysian economy is expected to still be on course to meet its 5-6 per cent growth target for 2011.

The property division is cautiously optimistic of its performance in the current financial year derived from buoyant sales of 6 CapSquare in Kuala Lumpur and the Straits View Residences in Johor as well as contribution from sales of the completed Troika and One Menerung projects, it added.

In August, the group offered for sale its first mid-range condominiums in Kuala Lumpur -- Verdana at North Kiara -- which has enjoyed a strong take-up rate. The group’s recurring income base from its investment properties continues to grow with full occupancy of BSC and rising tenancies of Menara BRDB and Troika Commercial.

Its manufacturing, MIECO Chipboard Bhd is confident of a continuing improvement of its business and financial performance in 2011, but added that the demand for particleboards and operating margins may be affected by the ongoing debt crises in the US and Europe.

MIECO also hopes to benefit from higher domestic demand with the implementation of the Economic Transformation Programme and from export sales to Japan on its reconstruction spending as well as to new markets in which
it has made successful inroads. -- Bernama