KUALA LUMPUR (Dec 27): Selangor Properties Bhd saw net profit in its fourth quarter ended Oct 31, 2017 (4QFY17) decline 64.4% to RM20.44 million from RM57.4 million a year ago, no thanks to lower other operating income incurred in the quarter under review.

The company’s other operating income declined nearly 82% to RM13.79 million in the quarter under review, from RM76.19 million in the previous corresponding quarter. Earnings per share shrank to 5.95 sen per share, from 16.7 sen previously.

However, its quarterly revenue expanded 28.7% to RM45.23 million, from RM35.14 million in the same quarter last year, mainly thanks to its property development division, while its investment holding and Australian operations also recorded higher revenue.

For its full financial year ended Oct 31, 2017 (FY17), Selangor Properties recorded a net profit of RM92.6 million, up 37.5% from RM67.36 million in FY16 amidst higher revenue and having incurred investment gains in the year under review.

Annual revenue grew 15.9% on-year to RM140.17 million from RM120.93 million a year ago, contributed by higher revenue from its property development division, as well as its operations in Australia.

On prospects, Selangor Properties conceded that the property sector “is experiencing an oversupply situation in all sub-sectors for a considerable period with no foreseeable improvement in the short term”.

“Having said that, the group's property investment division in Malaysia is experiencing a slowdown while in Australia, (it) is stabilised,” it said.

It added that its AIRA Residence is expected to be completed in early 2021, and that revenue would be recognised progressively over the period, while its Bukit Permata project is expected to be relaunched in the first half of 2018.

Meanwhile, the company’s project within the Wisma Damansara site has been put under review following the recent freeze on new property development priced above RM1 million that has yet to receive government approvals.

“Barring unforeseen circumstances, the group expects the operations in Malaysia and Australia to remain positive in 2018,” it added.

Selangor Properties’ share price gained one sen at RM5.12, giving the property developer a market capitalisation of RM1.72 billion.