KUALA LUMPUR (May 22): Tropicana Corp Bhd's net profit surged 71.49% year-on-year to RM46.4 million in its first quarter ended March 31, 2018 from RM27.06 million due to cost savings and advanced progress of projects.

Earnings per share grew to 3.17 sen from 1.89 sen a year ago, the group said in a filing with Bursa Malaysia today.

Quarterly revenue went up 21.22% to RM453 million from RM373.68 million on higher progress billings from advanced stages of construction work for many of the group's ongoing projects.

Moving forward, the group said the overall short-term prospects for the industry are expected to remain challenging.

It believes that there will still be demand for properties in prime locations with attractive pricing, and the group will continue to focus on being market-driven and unlock the value of its landbank at strategic locations across the Klang Valley and the northern and southern regions of Peninsular Malaysia.

As such, it plans to introduce new phases across its signature developments, namely Tropicana Heights, Tropicana Aman, Tropicana Metropark and Tropicana Danga Cove, which are expected to continue to contribute positively to its earnings.

Tropicana is also confident of registering steady recurring income stream from its property investment portfolio including international schools St Joseph's Institution International School Malaysia, GEMS International School and Tenby International School.

The group also expects positive contribution from the 150-room W Hotel at the Kuala Lumpur City Centre, which is targeted to be operational in second half of 2018.

Tropicana's share price dipped 1.5 sen or 1.67% to close at 88.5 sen for a market capitalisation of RM1.32 billion.