KUALA LUMPUR (Jan 20): Guocoland (M) Bhd, the property development outfit controlled by banking magnate Tan Sri Quek Leng Chan, has slipped into the red in its second quarter ended Dec 31, 2015 (2QFY16) with a net loss of RM7.48 million, as its revenue dropped almost 35% on lower contributions from various projects.
The group, which recorded a net profit of RM3.02 million in 2QFY15, saw its revenue came in at RM36 million in the latest quarter, compared with RM55.3 million in 2QFY15, its quarterly financial report to Bursa Malaysia today showed.
Loss per share for the quarter under review was 1.12 sen, compared with an earnings per share (EPS) of 0.45 sen in 2QFY15.
Guocoland said the revenue decline was mainly due to lower contribution from its projects in PJ City, Commerce One, Old Klang Road and Amandarii Kajang.
"These projects have contributed significantly in the previous year corresponding quarter. The reduction in the contribution from commercial projects was partly mitigated by an increase in the residential project in Damansara City," the group added.
Nevertheless, its first half ended Dec 31 (1HFY16) saw its net profit more than doubled to RM13.85 million from RM5.8 million in 1HFY15, as revenue came in 27.5% higher at RM106.81 million from RM83.81 million in 1HFY15.
1HFY16 EPS stood at 2.07 sen, compared with 0.87 sen previously.
Guocoland said the improved performance was mainly due to the recognition of fair value gain amounting to RM16.7 million.
Moving forward, the group foresees that the property market outlook and sentiment will continue to be cautious amid uncertain economic environment.
"The board foresees a challenging year ahead. The group will continue to focus on timely completion of its development projects and to monetise its inventories," it said.
Guocoland shares fell two sen or 1.77% to RM1.11 today, giving it a market capitalisation of RM791.5 million.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)