KUALA LUMPUR (May 19): PJ Development Holdings Bhd saw its net profit dip 8.71% to RM18.76 million or 4.14 sen per share in the third financial quarter ended March 31, 2015 (3QFY15), from RM20.55 million or 4.54 sen a year ago, on lower contribution from its hotel and leisure division.

Revenue for 3QFY15 rose by a marginal 0.64% to RM229.2 million, from RM227.74 million in 3QFY14, driven by its core construction division.

The construction division registered a pre-tax profit of RM5.8 million for 3QFY15, up by 102% from 2.9 million in 3QFY14.

For the nine months period (9MFY15), the group's net profit rose 7.5% to RM81.58 million or 18.05 sen per share, from RM75.89 million or 16.75 sen per share a year ago; while revenue rose 1.78% to RM718.07 million, from RM705.5 million.

In a filing with Bursa Malaysia today, PJ Development (fundamental: 2.3; valuation: 3) said the higher year-to-date profit was due to higher profit recorded by the divisions of property, construction and integrated building system.

The group said the construction division is expected to contribute to higher earnings in financial year ending June 30, 2015 (FY15), due to more efficient construction cost management; while the hotel and leisure division is expected to decrease slightly in growth, due to low occupancy rate in the overall hotel industry.

However, it said as a result of bank credit tightening, the take up rate of property sales is expected to slow down.

“With the group’s core competencies and its established track record, the board is optimistic that the group will continue to perform well and achieve satisfactory results for the remaining financial year,” said PJ Development.

The stock closed one sen or 0.66% lower at RM1.50 today, with a market capitalisation of RM685.26 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.)