Selangor Properties 1Q net profit declines 62.6%

KUALA LUMPUR (March 27): Selangor Properties Bhd saw its net profit for the first quarter ended Jan 31, 2015 (1QFY15) drop 62.6% on-year to RM58.08 million, from RM155.26 million, mainly because the previous corresponding quarter recognised profits for the disposal of its stake in Help International Corp Bhd.

In a filing with Bursa Malaysia today, Selangor Properties (fundamental: 2.3; valuation: 3) said its revenue however grew 8.2% to RM23.85 million, from RM22.05 million a year earlier.

Segmentally, Selangor Properties said its current investment properties still enjoy high occupancy and will contribute positively to the group.

On property development, it said the delay in new launches has resulted in lower revenue and the division is currently incurring losses.

It noted however, the launch of its Bukit Permata project is expected to be in the third quarter of 2015.

Its Australian operation also recorded losses of RM3.1 million, higher than RM1.6 million a year before, as there was a foreign exchange loss of RM1.4 million when the ringgit strengthened against the Aussie dollar.

On prospects, Selangor Properties said its property investment segment is expected to remain stable, as the occupancy rates for Menara Milenium in Damansara Heights and Claremount Shopping Centre in Perth, Australia, remain high.

"For property development in Bukit Permata, the Group is reviewing its development plan and new launches are expected to be made in 3rd quarter of 2015. The proposed development of the group's land in Damansara Heights will be designed to provide integration and connectivity with the Mass Rapid Transit project," it said.

The Bukit Permata project is the group's terrace home development in Gombak, which has an estimated gross development value (GDV) of RM250 million.

Its Damansara Heights project, in which it intends to build 106 residential units, has an estimated GDV of RM500 million.

"Barring unforeseen circumstances, the group expects the operations in Malaysia and Australia to remain positive in 2015," it added.

Shares of Selangor Properties declined 3 sen to settle at RM5.48 today, giving it a market capitalisation of RM1.88 billion.
 
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)