Guocoland back in the black in 3Q, thanks to land disposal

Guocoland back in the black in 3Q, thanks to land disposal
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KUALA LUMPUR (April 23): Guocoland (M) Bhd reported a net profit of RM73.23 million for its third-quarter ended March 31, 2021 (3QFY21) versus a net loss of RM11.37 million in the preceding quarter due to the disposal of land in Jasin, Melaka and higher revenue.

Revenue grew by more than three times to RM334.9 million from RM91.32 million in 2QFY21, the property developer said in a bourse filing.

On a year-on-year basis, the group also returned to profitability from a net loss of RM10.13 million in  3QFY20 while revenue  more than trebled from RM98.06 million.

On top of the disposal of the Jasin land worth RM260.2 million, the group attributed the better profitability to the positive contribution from its ongoing development, namely Emerald Hills and Emerald 9 in Cheras

It was also due to lower selling and marketing expenses as a result of reduced sales and marketing activities following the imposition of the Movement Control Order.

For the cumulative nine-month period ended March 31, 2021, Guocoland said it recorded a net profit of RM70.41 million against a net loss of RM34.98 million in the previous corresponding period, while cumulative revenue more than doubled to RM517.15 million from RM236.57 million.

On prospects, the group said it expects the property market to remain lacklustre in the current financial year due to weak consumer sentiments.

The group said it will continue to focus on monetising its inventories and timely completion of its development projects. New product launches will be phased according to prevailing market sentiments, it added.

Guocoland’s share price closed unchanged at 78.5 sen, bringing the group a market capitalisation of RM550 million. The stock saw 36,700 shares traded.

S Kanagaraju