AmProp's 3Q earnings jump 19 times on stronger JV contribution

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KUALA LUMPUR (Feb 9): Amcorp Properties Bhd (AmProp) saw a near 19 times rise in net profit for its third quarter ended Dec 31, 2017 (3QFY18) to RM75.21 million from RM4.01 million in the corresponding quarter last year, driven by stronger contribution from its joint ventures.

Revenue for the quarter under review, however, is 19% lower at RM36.11 million, compared with RM44.52 million a year ago, as it saw lower sales achieved by Kayangan Heights in the quarter.

Its share of results from JVs, however, jumped to RM87.62 million from RM3.84 million, its filing with the stock exchange this evening showed.

AmProp said the higher share of results from its JVs came mainly from profit recognition from progressive delivery of sold units in overseas projects.

This includes Burlington Gate and Holland Park Villas, both of which are in London. Holland Park Villas achieved practical completion in the quarter, and recognised sales from 30 units out of 72 total units, it added.

In the first nine months of FY18, AmProp’s net profit stood at RM102.65 million, about 10 times higher than the RM10.32 million it registered in the same period last year, despite revenue falling 25% to RM106.25 million from RM141.33 million.

Similarly, the property developer attributed the improved profitability to its overseas property projects. The lower revenue, however, was due to lower sales contribution from its Malaysian properties.

AmProp expects to record a higher profit for its financial year ending March 31, 2018 (FY18), compared with FY17 when it recorded a net profit of RM13.2 million, given that its two London JV projects have been completed in the second and third quarter of its current financial year, it said.

At 5pm today, shares in AmProp slid half a sen or 0.72% to close at 69 sen — its lowest in two years — valuing the company at a market capitalisation of RM420.01 million.