KUALA LUMPUR (April 23): GuocoLand (Malaysia) Bhd reported an almost six-fold increase in its net profit to RM55.69 million for the third quarter ended March 31, 2018 (3QFY18), from RM8.34 million in the previous year’s corresponding quarter, due to the gain on disposals of several assets during the quarter.
The group disposed its entire interests in JB Parade Sdn Bhd and PD Resort Sdn Bhd to GuocoLand Hotels Pte Ltd, resulting in a gain of approximately RM104.8 million.
Meanwhile, quarterly revenue declined 56% to RM35.83 million from RM81.17 million a year earlier, due to lower contributions from the residential project in Oval and the absence of contributions by PJ City Parcel A Phase 2.
For the cumulative nine months ended March 31 (9MFY18), net profit dropped 52% to RM57.72 million from RM119.42 million in the previous year, while revenue jumped 90% to RM289 million from RM152.31 million.
On its prospects, the group said it expects the local property market to remain lacklustre, amid weak market and consumer sentiments, as well as Bank Negara Malaysia’s 25 basis point increase in the overnight policy rate.
“The overall momentum and prospects of the property market in the next one to two years is expected to remain soft and challenging.
“As property development is the key driver of our business operations moving forward, the group will remain steadfast to launch its project according to prevailing market sentiments,” GuocoLand said.
GuocoLand fell 3 sen or 3.06% to 95 sen today, giving the group a market capitalisation of RM672.44 million.