KUALA LUMPUR (May 29): Johor-based property developer KSL Holdings Bhd saw its net profit rise 35% to RM82.5 million in the first quarter ended March 31, 2015 (1QFY15), as compared to RM61 million a year ago, on higher progress billings and favourable sales mix.

In a statement, KSL (fundamental: 2.6; valuation: 2.4) said its revenue went up 27% to RM263.8 million in 1QFY15, as compared to RM207.9 million in 1QFY14.

KSL Holdings said 85.5% of its group sales in 1QFY15 were derived from the property development segment, with the remainder 14.5% from its property investments segment — which comprises mainly of the integrated KSL City Mall, and KSL Hotel and Resort in Johor Bahru.

Revenue from the property development segment rose 31% year-on-year (y-o-y) to RM225.6 million in 1QFY15, from RM172.3 million, on enhanced progress billings.

The property investments segment saw its 1QFY15 revenue increase 7.3% y-o-y to RM38.2 million, as compared to RM35.6 million previously, on healthy occupancy rates and favourable tenant mix.

KSL chairman Ku Hwa Seng said while the group’s 1Q15 results were commendable given the cautious market sentiment, KSL is mindful of the challenges in the current financial year, as consumers adapt their daily spending and future requirements, post-implementation of the goods and services tax.

“That said, KSL has faced numerous industry down-cycles in the past 23 years, and have built our core business in providing affordable homes for the masses,” he said.

“We believe that the ever-growing population would translate to sustained demand for affordable properties, especially in high-growth and well-connected locations,” he added.

Ku said the group has a balance landbank of approximately 2,100 acres (894.84 ha) for current and future developments across Johor Bahru, Batu Pahat, Kluang, Segamat, Muar, Mersing, Klang and Kuala Lumpur.

It thinks this landbank provides it with ample opportunity to fulfil market demand for the next 15 to 20 years.

KSL’s ongoing developments — in both Johor and Klang Valley — have a total gross development value (GDV) of RM3 billion.

KSL Holdings shares closed one sen or 0.56% lower at RM1.78 today, with a market capitalisation of RM1.71 billion.

(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.)