Tradewinds 2Q net profit up 23% to RM11.33m

KUALA LUMPUR: Tradewinds Corp Bhd's net profit for the second quarter ended June 30, 2010 (2Q10) rose 23.3% to RM11.33 million from RM9.18 million a year ago, due to a 3.3% increase in revenue.

Its revenue rose 3.3% to RM122.81 million from RM118.85 million mainly contributed by the financial services division, the hotel division and the inclusion of a new subsidiary. Earnings per share was 1.03 sen versus 0.83 sen a year ago, while net assets per share was RM1.64.

For the six months ended June 30, 2010 (1H10), Tradewinds' net profit more than doubled to RM28.14 million from RM13.16 million in the previous comparable half. Revenue year-to-date rose 8.1% to RM247.08 million from RM228.56 million.

On its prospect, the company said the financial performance of its hotel division in 2010 was expected to be better than 2009 with signs of improvement in leisure and corporate travel market.

However, it noted growing competition from existing market players has resulted in price competitiveness.

Tradewinds said that the property investment operation, while stable, was facing increasing competition from newer, modern and well designed office buildings that would result in erosion of the company's competitive position impacting future yields.

"To stay ahead of the competition, the company would be embarking on the refurbishment of the existing Menara Tun Razak and development of a new 40-storey tower block on the same site," Tradewinds added.

The company's share price at midday was unchanged at 77.5 sen with 497,000 shares traded.