KUALA LUMPUR (Sept 25): Property developer Talam Transform Bhd recorded a net loss of RM11.99 million or 0.28 sen per share for its second financial quarter ended July 31, 2015 (2QFY16), from a net profit of RM6.86 million or 0.47 sen per share a year ago .

In a filing with Bursa Malaysia today, the group attributed its net loss position to lower proceeds from the sale of development lands as well as lower other operating income and finance income, and a provision for impairment of land held for development.

The group also recorded an 87.3% plunge in its 2QFY16 revenue to RM10.92 million from RM86.04 million in 2QFY15 as a result of lower proceeds from the sale of development lands.

For the first half of its financial year ended July 31, 2015 (1HFY16), Talam recorded a higher net loss of RM15.08 million, compared to a net loss of RM12.54 million a year ago.

Revenue for 1HFY16 fell by 27% to RM120.76 million, as compared to RM165.51 million in 1HFY15.

As for its prospects, the group said that its joint venture projects are ongoing and it has also submitted new development plans on various parcels of land and will launch them once approvals are obtained from the relevant authorities.

"However, the board foresees a challenging financial year ahead for the group due to market conditions brought about by tougher lending guidelines by Bank Negara Malaysia and an increasing construction costs environment," said Talam in its announcement.

Talam's shares were unchanged at 5.5 sen today, arriving at a market capitalisation of RM232 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.)