Friday 29 Mar 2024
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KUALA LUMPUR (Feb 22): IOI Properties Group Bhd's (IOI Prop) net profit slipped by 20% to RM170.98 million in the second quarter ended Dec 31, 2020 (2QFY21), from RM213.88 million a year ago due to the lower profit contribution from the property investment, hospitality and leisure segments as the government reimposed the Conditional Movement Control Order (CMCO).

The property developer also attributed the weaker earnings to the lower share of results of joint ventures due to lower sales and hotel performance as a result of the Covid-19 pandemic.

This was despite a 4.82% higher in revenue for the quarter at RM591.34 million, against RM564.13 million in 2QFY20, mainly attributable to the property development segment, according to a filing with Bursa Malaysia today.

The higher revenue in the said segment is mainly due to higher revenue contribution from China's operations.

The property developer did not declare dividend in the quarter under review.

For the six-month period ended Dec 31, 2020, its net profit was 4.01% lower at RM363.08 million, from RM378.27 million, while revenue was 13.27% higher at RM1.25 billion, from RM1.1 billion.

On prospects, the property developer expects the operating environment to remain challenging and uncertain.

In Malaysia, the group continues to leverage on its digital marketing capabilities and IOI eMarketplace platform to drive sales and facilitate property transaction processes.

"Our marketing campaign coupled with Home Ownership Campaign under the National Economy Recovery Plan (PENJANA) will continue to drive sales of our mid-price range of products in tandem with market demands as these products remain well sought-after in our existing townships," said IOI Prop.

In China, the group anticipates demand for residential properties to normalise and moderate in the coming quarters. IOI Palm City Mall in Xiamen, which is expected to open by the third quarter of 2021, has secured high occupancy, while the construction of boutique office blocks and Sheraton Grand Hotel is progressing well, said IOI Prop.

In Singapore, the construction of Central Boulevard development has resumed since August 2020 and the management is endeavouring to catch up on lost time resulting from the Circuit Breaker that was imposed in April 2020.

IOI Prop's share price dropped four sen or 2.82% to close at RM1.38 today, valuing it at RM7.6 billion. Over the past year, the counter has risen some 30.2% from RM1.06.

Edited ByKathy Fong
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