Naim Indah’s FY16 audited earnings is 65% lower than unaudited report

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KUALA LUMPUR (April 21): Naim Indah Corp Bhd disclosed that its financial year ended Dec 31, 2016 (FY16) audited net profit is actually 64.8% lower than the group’s unaudited quarterly disclosure to Bursa Malaysia.

In a filing with Bursa Malaysia today, Naim Indah revealed that audited net profit for FY16 was RM10.33 million compared with RM29.37 million it reported on Feb 27 this year.

Naim Indah said the deviation was mainly due to lower gain on fair value adjustment in its investment property Centerpoint Seremban Mall.

The group explained that the initial valuation on Sept 30 last year gave the property a gain on fair value adjustment of RM31.55 million, following the completion of a major refurbishment on the mall, but prior to its re-opening on Sept 28, 2016.

Subsequent to the re-opening, Naim Indah’s management noted that the occupancy rate of about 55% was lower than originally anticipated, while the property’s revised land area amounted to 266,349 sq ft instead of 310,130 sq ft prior to the land amalgamation by the Negeri Sembilan Registry of Titles on Jan 10 this year.

Hence, Naim Indah said its management had on March 10 this year re-engaged MacReal International Sdn Bhd to conduct a supplemental valuation to take into consideration the additional information.

As a result, the revised gain on fair value adjustment on the property was just RM11.52 million.

Naim Indah, a project management consultancy firm, saw its share price fall 0.5 sen or 4.76% to 10 sen today, giving it a market capitalisation of RM86.35 million.