Berjaya Land up 15.97% on significantly higher 2Q net profit

KUALA LUMPUR (Dec 22): Berjaya Land Bhd (BLand) rose 15.97% at mid-morning today after it posted a significantly higher net profit for the second quarter ended Oct 31, 2015 (2QFY16) of RM208.3 million or 4.17 sen per share, as it gained from the disposal arising from the dilution of its stake in Berjaya Kyoto Development (S) Pte Ltd (BKD).

In comparison, net profit for 2QFY15 was RM8.97 million or 0.18 sen per share.

At 10.07am, shares of BLand rose 11.5 sen to 83.5 sen, with 152,900 shares changing hands.

In a filing with Bursa Malaysia yesterday, BLand said the better earnings were also due to higher contribution from H R Owen Plc and its property development and investment businesses.

This was, however, offset by lower profit reported by Sports Toto Malaysia Sdn Bhd (STMSB) and its hotel and resort business, which saw lower revenue due to lower average room rates.

Revenue for 2QFY16 increased 14.9% to RM1.62 billion from RM1.41 billion in 2QFY15.

“The gaming business is expected to be challenging while maintaining our market share in the numbers forecast operator industry,” BLand said in its filing.

“The performance of the hotel and resort business is expected to remain satisfactory, while the focus of the property development business will be on its overseas development projects,” the group added. -- theedgeproperty.com