Goldis 1H2012 earnings up 43.8% on higher associate profits

KUALA LUMPUR (Sept 19): Goldis Bhd's earnings for the first half ended July 31, 2012 grew 43.8% to RM43.2 million helped by higher occupancy rates at its properties and a bigger share of profits from 27.8%-owned associate IGB Corp Bhd.

This happened even as revenue from Goldis's own businesses jumped 60.6% to RM52.68 million from the year before. Strong demand from the oil & gas sector and companies looking to house back office operations helped it achieve a 94% occupancy rate, Goldis said in notes to its accounts, without specifying which property. Goldis owns GTower, which has 180 hotel rooms and 573,000 sq ft of office space.

Goldis, which assumed the listing status of Tan & Tan Development Bhd after its de-merger with IGB in 2002, is controlled by the family of its co-founders Datuk Tan Chin Nam and his late brother Tan Kim Yeow.

Last month, IGB said net profits for the first six months ended June 30, 2012, rose31.4% to RM113.42 million with improvements seen in all segments. Its numbers benefited from the injection of MidValley Megamall and the Gardens Mall by its subsidiary KrisAssets Holdings Bhd into the IGB Real Estate Investment Trust (REIT), which is slated to debut on Bursa Malaysia this Friday, September 21.

For the second quarter ended July 31, 2012, Goldis saw profits attributed to shareholders grew 24.5% to RM22.17 million even as revenue rose 50% to RM26.58 million over the same period.

That said, compared to the first quarter of the year, Goldis said pre-tax profits decreased 2% from RM26.5 million to RM26 million in the second quarter "mainly due to lower contributions from [its] associate".

Despite new supply of office space entering the market, Goldis expects measures taken by the government to boost the economy to provide impetus for growth and "create new demand in the office sector as the economy improves", notes to its accounts read.

Goldis added 2 sen or 0.99% to close at RM2.05 today with only 4,100 shares done.