KUALA LUMPUR (Mar 27): Talam Transform Bhd slipped into the red for the fourth financial quarter ended Jan 31, 2015 (4QFY15), on lower revenue and higher impairment losses of RM177.44 million.

It posted a net loss of RM124.09 million or 3.06 sen loss per share compared with a net profit of RM37.05 million or 0.76 sen earnings per share in 4QFY14. 

Revenue for 4QFY15 dropped by 46.8% to RM79.77 million against RM149.94 million a year ago, due to lower proceeds from sale of development lands.

For the full financial year ended Jan 31, 2015 (FY15), Talam Transform (fundamental: 0.45; valuation: 1.2) recorded a net loss of RM125.59 million compared with a net profit of RM21.98 million.

Revenue, however, grew by 52.83% to RM292.57 million from RM191.44 million a year ago due to more proceeds from disposals of development lands. 

On prospects, Talam Transform foresees a challenging financial year ahead due to market conditions brought about by tougher lending guidelines by Bank Negara Malaysia and an increasing construction costs environment.

However, it said it will continue to enter into joint ventures with reputable corporations to develop its land banks, in addition to the current joint venture development projects.

"The group will launch new development projects once approvals are obtained from the relevant authorities," it added. 

Talam Transform shares closed unchanged at 8.5 sen today, translating into a market capitalisation of RM358.5 million. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)