KUALA LUMPUR (Nov 27): PJ Development Holdings Bhd reported a marginal 0.6% drop in net profit to RM30.23 million or 6.7 sen per share for the first financial quarter ended Sept 30, 2014 (1QFY15)from RM30.4 million or 6.71 sen per share a year ago.
Revenue for 1QFY15 grew 5% to RM248.47 million from RM236.13 million in 1QFY14 on encouraging sales performance from the current ongoing property development projects.
PJ Development did not declare any dividend for the quarter.
On a segmental basis, its property development division registered a 44.8% increase in revenue to RM117 million from RM80.9 million a year ago on strong sales performance, while revenue for the construction division rose 7% to RM102.27 million from RM95.48 million on advanced stages of construction work for its property projects.
However, its cable division recorded a 17% decrease in revenue to RM45.79 million from RM55.13 million on lesser contribution from the government sector.
PJ Development’s hotel division posted a dip of 1.3% in revenue to RM31.6 million compared with RM32 million in 1QFY14 due to lower occupancy rate, which the group said was in line with current hotel industries in the market.
The group operates Swiss-Garden hotel chains in the country.
On its outlook, PJ Development remains confident that it will continue to perform well and maintain satisfactory results for financial year ending June 30, 2015 (FY15), despite the recent property cooling measures that may affect the market sentiment in the short to medium term.
Veteran stockbrocker Tan Sri Ong Leong Huat, 70, has a 21.45% stake in PJ Development, held indirectly via his private vehicles Dindings Consolidated Sdn Bhd and Land Management Sdn Bhd.
Ong, via his flagship vehicle OSK Holdings Bhd, recently entered into a conditional share sale agreement to purchase a 31.7% stake in PJ Development for RM1.60 per share.
However, the offer price is deemed unattractive, given that PJ Development’s shares were trading slightly higher than the offer price. The stock closed 1 sen lower to RM1.61 today, giving it a market capitalisation of RM728.2 million.