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KUALA LUMPUR: GuocoLand (Malaysia) Bhd, which is 64.98%-owned by Singapore-based GuocoLand Ltd, the property investment arm of the Hong Leong Group, recorded a net profit of RM15.71 million for the third quarter ended March 31 (3QFY14).
This is a 79% improvement from the RM8.79 million recorded in the previous corresponding quarter, mainly due to higher profit recognised from its ongoing project in PJ City and its newly launched project in Damansara City.
This was despite revenue for 3QFY14 falling 45% to RM58.44 million from RM106.03 million a year ago, as the previous corresponding quarter had the benefit of a sale of land in Cheras amounting to RM68.6 million.
For the nine months ended March 31, 2014 (9MFY14), the group’s net profit rose 47% to RM40.9 million from RM27.83 million a year earlier, while revenue declined 5.24% to RM178.59 million from RM188.46 million.
In a filing with Bursa Malaysia yesterday, GuocoLand said Bank Negara Malaysia’s credit tightening rules and the various cooling measures announced under Budget 2014 to curb property speculation have affected market sentiment and sales.
“Notwithstanding the reduction in property transactions, prices of properties in good locations are still holding up and these properties continue to attract interest,” it said.
As such, the group expects to perform better for the current financial year ending June 30, 2014 compared with FY13 on the back of good performance of the property development segment and continued contributions from its associates and jointly controlled entitites as well as the hotel segment.
This article first appeared in The Edge Financial Daily, on April 22, 2014.
