KSL net profit drops 5.4% in 1Q 2010

KUALA LUMPUR: KSL Holdings Bhd (KSL) recorded a drop in net profit of 5.4% in the first quarter ended March 31,2010 with RM16.069 million compared to RM16.978 in the corresponding quarter a year ago. Revenue, however, increased by 17.1% with the current quarter recording RM53.536 million versus RM45.653 million in the same quarter a year ago.

In an announcement on Bursa Malaysia on May 25, the Group highlighted that the current quarter's performance was contributed by the Group’s flagship projects in Johor Baru, Muar, Yong Peng and Segamat namely, Taman Nusa Bestari, Taman Bestari Indah, Taman Kempas Indah and Maharani Riviera.

The Board expects the prospects of landed residential properties in Johor to be challenging in view of the current global financial crises and economic uncertainties. However, it believes that with its land bank of 1,000 acres in Johor Baru, a niche market and strong brand name in the Johor property scene will contribute positively to the Group’s results for the current financial year.

Additionally, KSL is expecting its Klang Valley project to come on stream by this year. Furthermore, as of March 31, the Group has approximately 2,100 acres of land bank for development in Klang, Johor Baru, Batu Pahat, Kluang, Segamat, Muar and Mersing that will help sustain the Group in the medium to long-term development and profitability.

The Group's principal activities are developing residential and commercial properties and investing in properties for rental. Other activities include the provision of management services and investment holding. The Group operates in Malaysia.