This article first appeared in The Edge Financial Daily on July 25, 2018

KUALA LUMPUR: Property developer I-Bhd’s net profit rose 5.6% to RM22.31 million in the second quarter ended June 30, 2018 (2QFY18) from RM21.12 million a year ago, thanks to a hike in profit margin arising from the cost adjustment as a result of the changes in the national tax regime.

This resulted in higher earnings per share of 2.1 sen from 1.99 sen in 2QFY17.

Quarterly revenue, however, was down 18.8% to RM107.16 million in 2QFY18 from RM131.94 million a year ago.

For the cumulative six months (1HFY18), I-Bhd’s net profit rose 11.1% to RM 46.8 million from RM42.12 million a year ago, while revenue grew 10.9% to RM266.51 million from RM240.39 million.

On prospects, I-Bhd expects the property development segment to continue to contribute positively to the group’s performance in the current financial year ending Dec 31, 2018 as there has been a pickup in sales of its 8Kia Peng@KLCC development during the financial period.

In a filing with Bursa Malaysia yesterday, I-Bhd said as at June 30, the group’s unbilled sales stood at RM305.4 million, up from RM272.8 million a year ago, and are expected to grow in tandem with the sales of 8Kia Peng.

“Barring any unforeseen circumstances, the board is confident that the group would achieve commendable operating results for FY18,” it added.

In a separate statement, I-Bhd executive chairman Tan Sri Lim Kim Hong said 2018 is an important year for the group’s first five-year plan that has materialised and will then embark on its next five-year plan.

“The next five-year plan, while building on the foundation that the management team has laid over the past few years, will shift the focus to improving shareholders’ returns,” he added.

“Over the past three years, I-Bhd has achieved an average return on equity of approximately 7%. We are targeting to achieve a 10% return by the end of the next five-year plan period, driven by a two-pronged strategy of further top-line growth and operational improvements,” said Lim.

In the next five years, I-Bhd will also move to expand its usage to enhance operations with technology.