MUI Properties records RM180,000 2Q net loss

KUALA LUMPUR: MUI Properties Bhd recorded a net loss of RM180,000 for its second quarter ended June 30, 2010, dropping from a net profit of RM857,000 recorded in the same period a year ago.

The loss comes despite the company recording a higher revenue of RM6.7 million, up 21% from RM5.6 million recorded in the same period last year. 

In a filing to Bursa Malaysia on Tuesday, Aug 17, sales performance for the Bandar Springhill development project was encouraging during the period, while higher earnings from the sale of oil palm fruits contributed to the higher operating profit for the period under review.

The higher pre-tax profit for the same quarter last year was mainly due to the gain on disposal of a subsidiary company and an investment property completed last year of RM7.6 million and RM0.8 million respectively, the statement said.

The group believes the development of a university campus as well as an international school in Bandar Springhill will help accelerate the township development. Works on the international school have already started. “With stronger domestic demand, business and consumer sentiments are expected to improve, supporting the growth in the property market in Malaysia,” it said.

It continues to remain cautious of the general business environment but expects its operations to perform better for the remaining periods in the FY ending Dec 31. 2010.