KUALA LUMPUR (May 21): Property developer Plenitude Bhd's net profit contracted 13.18% on-year to RM20.09 million or 7.40 sen per share in the third quarter ended March 31, 2015 (3QFY15), from RM23.14 million or 8.60 sen per share, mainly on lower contribution from both its existing and completed property development projects in Johor and Kedah.

Consequently, Plenitude (fundamental: 2.7; valuation:2.4)’s 1QFY15 revenue also dropped 14.08% to RM62.47 million, against RM72.70 million last year, its filing to Bursa Malaysia today showed.

It said its current revenue and profit were principally derived from its property development activities at Taman Desa Tebrau in Johor; Taman Putra Prima in Selangor; Bayu Ferringhi in Penang; and Bandar Perdana & Lot 88 in Kedah.

For the nine months (9MFY15), its net profit declined 17.34% to RM63.57 million, from RM75.69million last year; while revenue also dropped to RM192 million, from RM224.23 million last year — down by 14.37%.

“The group’s financial position remains healthy, with zero gearing. Cash and cash equivalents amount to RM292.5 million as at March 31, 2015,” it added.

Plenitude said it expects the remaining financial year to be challenging, as the property market is projected to be soft amidst global, regional and national economic uncertainties.

“In spite of this, properties in good locations are expected to continue to draw property buyers,” it said.

Separately, Plenitude said it has obtained its shareholders’ approval at an extraordinary general meeting today, to make a conditional offer to The Nomad Group Bhd (fundamental:1.7; valuation:1.7).

“The offer is now only conditional upon Plenitude having received, before the close of the offer, valid acceptances in respect of the offer Shares, which would result in Plenitude holding more than 50% of the voting shares of The Nomad Group,” it said in another filing today.

To recap, Plenitude proposed a takeover of The Nomad Group for RM1.25 a share or RM278.84 million in total, via an issuance of 111.53 million Plenitude shares at an issue price of RM2.50 per share.

The Nomad Group’s latest reported book value is RM1.61 a share. The group, through its hotel segment, owns Novotel Kuala Lumpur City Centre, The Nomad SuCasa, GLOW Penang and The Nomad Serviced Residences Bangsar.

Plenitude's shares closed unchanged at RM2.29 today, with a market capitalisation of RM618.3 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.)