KUALA LUMPUR: Property developer Guocoland (Malaysia) Bhd saw its net profit plunge 78.5% to RM2.78 million for the first financial quarter ended Sept 30, 2014 (1QFY15) from RM12.94 million a year ago, mainly due to lower contribution from its commercial project in PJ City, Old Klang Road and its residential project in Kajang, Selangor.
Revenue for 1QFY15 also fell 53% to RM28.5 million from RM61.04 million a year ago. Earnings per share (EPS) for 1QFY15 was 0.42 sen compared with 1.93 sen in 1QFY14.
On a quarter-on-quarter basis, its net profit fell 97.5% from RM112.32 million in 4QFY14 as the April-June period had the benefit of a net fair value gain of RM112.5 million on the valuation of the group’s investment properties. EPS for 4QFY14 stood at 16.77 sen.
Going forward, Guocoland foresees the property market outlook and sentiment to remain cautious because of credit tightening initiatives from Bank Negara Malaysia and interest rate increases.
“The operating performance of the group is expected to be challenging for the current financial year (ending June 30, 2015),” said Guocoland in a filing with Bursa Malaysia yesterday. Its shares climbed one sen or 0.66% to close at RM1.52 yesterday, with a market capitalisation of RM1.06 billion.
This article first appeared in The Edge Financial Daily, on October 15, 2014.
TOP PICKS BY EDGEPROP
Meranti Terrace @ Kota Kemuning - Nice Unit
Kota Kemuning, Selangor
2 Storey House - Partly Furnished (End Lot)
Telok Panglima Garang, Selangor