KUALA LUMPUR (May 31): Property developer SHL Consolidated Bhd 's net profit in the final quarter of its financial year 2017 grew 6%, boosted by higher profit margin registered in its property development and construction business.

Net profit for the three months ended March 31, 2017 (4QFY17) climbed to RM24.5 million, from RM23.1 million a year ago. Earnings per share edged up to 10.12 sen in the quarter, from 9.54 sen a year ago (4QFY16), its Bursa Malaysia filing today showed.

Revenue, however, fell 20% to RM38.1 million in 4QFY17, from RM47.7 million last year. 

The group declared a second interim single-tier dividend of 6 sen per share for FY17, a payout of RM14.5 million, to be paid on July 5. This brings its total declared dividend for FY17 to 12 sen, from 14 sen in FY16.

Net profit for the full year (FY17) dipped 3% to RM82 million, from RM84.5 million last year, while revenue dropped 12% to RM203 million, compared with RM230.5 million in FY16.

Moving forward, SHL said the ongoing Mass Rapid Transit (MRT) lines along suburban areas are expected to increase demand for landed residential properties located in these areas.

However, the continued effect of Bank Negara Malaysia’s tightening lending rules and the current weak economic environment has resulted in a softening of demand for residential and commercial properties, it said.

“Barring any unforeseen circumstances, the board is cautiously optimistic that its performance for FY18 will be satisfactory,” it said.

Its share price dipped two sen or 0.7% to close at RM2.83 today, for a market capitalisation of RM685.2 million.