China Factor Impacts IOI Properties, 9M Profits Plunges 50%

IOI Properties Group Berhad recorded a revenue of RM2.16 billion for the nine months of financial year 2024 which ended on 31 March 2024. The group said the robust performance is attributed to stronger results across all segments, partly driven by the land sales in Johor amounting to RM211.1 million.

The property investment segment maintained its stellar performance with a commendable growth of 21%. The hospitality and leisure segment also grew by 13% driven by the contributions from Moxy Putrajaya, a 480-room hotel which opened its doors just before Chinese New Year and the newly acquired 150-room W Kuala Lumpur, which came onboard in February 2024.

net profit for the year declined to RM522 million compared to RM1.1 billion recorded in the nine months of FY23. Profit before tax decreased by 50% to RM658.7 million compared to RM1.32 billion reported in 9M FY2023. However, after excluding fair value gain, reversal of inventories written down, and impairment loss, the underlying PBT in 9M FY2023 derived at RM688.5 million, where the current quarter’s underlying PBT stands at 8% lower. The decline in PBT was primarily due to the weaker contribution from its property development segment in the People’s Republic of China, which recorded lower sales.

However, the weaker performance of its property development segment was partially mitigated by the stronger performance of the property investment segment. This performance demonstrates IOIPG’s farsightedness in its business strategy as it navigates the global economic uncertainties while maintaining stability in all its business segments in Malaysia, Singapore and PRC.

Source: Business Today