This article first appeared in The Edge Financial Daily on October 27, 2017

KUALA LUMPUR: GuocoLand (M) Bhd’s net profit rose fourfold to RM1.06 million in the first financial quarter ended Sept 30, 2017 (1QFY18) from RM265,000 a year ago, mainly due to contribution from its residential project in Damansara City.

Earnings per share increased to 0.16 sen from 0.04 sen in 1QFY17. Quarterly revenue nearly tripled to RM157.61 million in 1QFY18 from RM53.53 million in 1QFY17.

Nevertheless, GuocoLand warned that the property market outlook is expected to remain stagnant in the near term, foreseeing another challenging year ahead.

As such, the property developer said new product launches will be phased according to prevailing market sentiments.

“Properties in prime locations with good connectivity and attractive pricing are still seeing good demand. The group will continue to focus on monetising its inventories, leasing out vacant spaces and timely completion of its development projects,” it said in a filing with Bursa Malaysia yesterday.

“At the same time, the group will continue to explore new land bank opportunities and to replenish its land bank to ensure sustainable returns and long-term growth of the group,” it added.

GuocoLand shares closed up two sen or 1.7% at RM1.20 yesterday, bringing a market capitalisation of RM840.55 million.