KUALA LUMPUR (Nov 30): Property developer Tropicana Corp Bhd's net profit rose 2% to RM35.49 million in the third quarter ended Sept 30, 2017 (3QFY17) from RM34.8 million a year ago, mainly due to cost savings and higher progress billings from advanced progress of many of the group's ongoing projects in the Klang Valley and northern region.
This was partly offset by a RM34.7 million loss arising from the sale of a piece of development land.
Earnings per share slipped to 2.43 sen from 2.44 sen in 3QFY16 due to the dilutive effects of the potential shares from the exercise of its warrants.
Its quarterly revenue grew 29.8% to RM463.47 million in 3QFY17 from RM357.08 million in 3QFY16.
Tropicana declared a first interim dividend of 2 sen per share for the financial year ending Dec 31, 2017.
For the cumulative nine months (9MFY17), the group's net profit increased 45.1% to RM120.86 million from RM83.28 million a year ago, while revenue grew 28.7% to RM1.29 billion from RM1 billion in 9MFY16.
While the overall short-term prospects for the industry are expected to remain challenging, Tropicana believes there will still be demand for properties in prime locations with accessibility to good amenities and attractive pricing.
"The group has recently unveiled 'Tropicana Urban Homes' to address underlying needs of the middle income community and this new product line allows us to target a wider pool of customers and progressively grow our customer base," it said in a filing with Bursa Malaysia today.
This is backed by the group's unbilled sales of RM1.87 billion as at Sept 30, 2017, which is expected to continue to contribute positively to the group's earnings over the next few years.
Tropicana said it plans to further strengthen its brand presence and maximise the shareholders' value by unlocking the value of its 898.6 acres of land bank, with potential gross development value of RM42.8 billion.
Tropicana shares closed 3.2% or three sen lower at 90 sen today, with 3.41 million shares done, valuing it at RM1.32 billion.