Guocoland turns around in 4Q from last year, but q-o-q earnings plunge

Guocoland turns around in 4Q from last year, but q-o-q earnings plunge
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KUALA LUMPUR (Aug 25): Guocoland (M) Bhd reported a net profit of RM4.21 million for the fourth quarter ended June 30, 2021 (4QFY21), versus a net loss of RM19.38 million a year ago, due to lower income tax, marketing expenses and finance costs.

Revenue dropped 28.24% to RM133.63 million from RM186.22 million, the property developer said in a bourse filing.

On a quarter-on-quarter basis, Guocoland’s net profit  plummeted 94.26% from RM73.23 million in 3QFY21, while revenue shrank 60.10% from RM334.9 million.

For the year as a whole, Guocoland ended with cumulative net profit of RM74.62 million, compared to a net loss of RM54.36 million in FY20. 

Cumulative revenue increased 53.93% to RM650.79 million from RM422.79 million in FY20. The increase was mainly due to the sale of a parcel of land located in Jasin, Melaka, amounting to RM260.2 million, the group said.

In addition, the group registered better unit sales, as well as higher revenue recognition from the construction progress of its ongoing projects in Emerald Hills and Emerald 9 in Cheras. 

On prospects, Guocoland expects it to be challenging due to reduced consumer capital spending in response to the raging pandemic, coupled with large overhang of unsold properties. 

“Moving forward, the group 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,” the group said.

Guocoland’s share price closed up 0.5 sen or 0.68% at 74.5 sen today, bringing the group a market capitalisation of RM522 million.

S Kanagaraju