KUALA LUMPUR (Sept 23): Selangor Properties Bhd saw its net profit surge almost sixfold (480.49%) to RM44.64 million in the third quarter ended July 31, 2015 (3QFY15) or 12.99 sen per share compared to RM7.69 million in the previous corresponding quarter due to foreign exchange gain in its investment holding division.

In a filing with Bursa Malaysia, Selangor Properties recorded a 4.96% increase in revenue to RM24.76 million in 3QFY15 compared to RM23.59 million in 3QFY14.

For the first nine months of financial year 2015 (9MFY15), the company saw its net profit decline 34.82% to RM109.86 million or 31.97 sen per share compared to RM168.55 million or 49.05 sen per share in the previous corresponding quarter.

Revenue declined 3.71% to RM71.05 million in 9MFY15 compared to RM73.79 million in 9MFY14.

In the notes accompanying its results, the company said its investment holding division recorded a gain of RM92 million for 9MFY15 arising from the weakening of the ringgit against the US dollar and the Singapore dollar.

Selangor Properties said delays in the new launches had resulted in lower revenue and currently the property development division is incurring some losses.

As for its Australian operations, the company recorded lower profit of RM8.2 million in 9MFY15 compared to RM8.7 million in 9MFY14 despite higher revenue and lower expenses.

The better operational performance was offset by foreign exchange loss as the ringgit strengthened against the Australian dollar, the company said.

On prospects, the property investment sector of the group is expected to remain stable and will continue to contribute positively to the group as the occupancy rates for Menara Milenium in Damansara Heights and Claremont Shopping Centre in Perth, Australia, remain high.

The group is reviewing its development plan and new launches are expected to be made in late 2015; the new launch for the Bukit Permata project is expected to be in late 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.

The company expects the operations in Malaysia and Australia to remain positive in 2015.

However, it said the currency fluctuations in view of its overseas investments and the delay in recognition of a net profit of RM376.2 million from the disposal of a parcel of freehold land in Kuala Lumpur may affect the company's profitability.

Selangor Properties' shares closed 6 sen or 1.27% lower at RM4.67, with a market capitalisation of RM1.61 billion.

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