KUALA LUMPUR (May 27): Hunza Properties Bhd, whose controlling shareholder has expressed interest in taking it private, recorded a huge leap in its net profit for the third quarter ended March 31, 2015 (3QFY15).

The property developer’s net profit increased to RM5.5 million, from RM171,000 during the corresponding period a year ago.

Hunza attributed the jump to higher sales from its property development segment, due to stronger take-up rate and higher occupancy rate for its Gurney Paragon Mall and Office Tower this year.

Quarterly revenue for the quarter rose to RM54.81 million, from RM37.69 million, representing a 45.4% improvement year-on-year (y-o-y).

For the nine-month period, Hunza’s net profit grew 89% to RM17.01 million, from RM9.01 million last year, while its revenue expanded 43.3% y-o-y, from RM101.99 million to RM146.22 million.

Earnings per share (EPS) for the quarter grew to 2.48 sen, from 0.07 sen. This brings EPS for the cumulative period up to 7.6 sen.

On its prospects for the rest of FY15, Hunza said in a filing with Bursa Malaysia that it is confident the group will continue to record a decent performance.

“The group shall concentrate on constructing the latest phase of double storey link houses in Bandar Putra Bertam and green building super-condominiums of Alila II.”

“At the same time, we will maintain focus on the tenanting and management of Gurney Paragon Retail Mall and Office Tower. We also stress on the construction of low cost apartments, which is progressing smoothly,” said Hunza.

Hunza had announced in March that the company could be taken private by its major shareholder Khor Teng Tong Holdings Sdn Bhd's share, through a selective capital reduction (SCR) and repayment exercise.  Under the corporate exercise, entitled shareholders will receive a total capital repayment of RM230.72 million or RM2.50 cash for each Hunza share. The proposed SCR will reduce Hunza's share capital by RM230.72 million, by cancelling out 230.72 million shares.

The company's board had decided to table the proposed corporate exercise to its shareholders, but the extraordinary general meeting to vote on the proposal has yet to be held.

The news had lifted the company’s share price from RM1.90 in mid-March to 18-month high of RM2.35, valuing the developer at RM531.2 million.