Country View's 4Q net profit surges to RM52m on property disposal

Country View's 4Q net profit surges to RM52m on property disposal
-A +A

KUALA LUMPUR (Jan 22): Country View Bhd’s net profit surged over five times in its fourth quarter ended Nov 30, 2018 (4QFY18) to RM52.03 million from RM9.54 million in the same quarter last year, mainly due to the completion of disposal of lands in Kedah in the quarter under review.

The strong net profit growth, however, was partly offset by higher administrative expenses arising from the allowance on fair value losses on investment properties in 4QFY18 in order to reflect the fair value of the investment properties as at Nov 30, 2018.  

“Administrative expenses also increased due to losses from the disposal of investment properties in the current quarter,” the Johor-based property developer said.

Its quarterly revenue was up 3.9 times to RM141.79 million in 4QFY18 compared with RM36.48 million a year earlier. Earnings per share improved to 52.03 sen from 9.54 sen.

On Dec 14, 2017, Country View disposed lands in Kulim for a total of RM119.95 million. At the time, the group said it expected to realise a gain of RM74.67 million from the transaction.

For the full year ended Nov 30, 2018 (FY18), Country View's net profit rose 2.5 times to RM70.51 million from RM28.47 million a year ago, as revenue grew 94% to RM236.06 million from RM121.95 million.

Going forward, the group remains cautious in view of continued stringent lending requirements by the financial institutions, coupled with intense competition among property developers and weak market sentiment.

Country View expects its revenue and profit in the financial year ending Nov 30, 2019 (FY19) to be mainly driven by its three-storey cluster houses, three-storey terrance houses, three-storey shop offices, One Sentral Serviced Residence and the affordable homes under the Rumah Mampu Milik Johor (RMMJ) at Iskandar Puteri.

As for new projects in FY19, Country View is planning to launch new three-storey semi-detached homes at Taman Nusa Sentral.

Country View shares closed up four sen or 2.58% at RM1.59 today, giving it a market capitalisation of RM159 million.