IOI Properties' 2Q net profit falls 70% on poor showing by property and hospitality segments

KUALA LUMPUR (Feb 28): IOI Properties Group Bhd’s net profit for  its second quarter ended Dec 31, 2023 (2QFY2024) declined 69.78% to RM121.5 million from RM401.98 million a year earlier amid a weaker performance by the group's property development segment as well as its hospitality and leisure business.

Earnings per share slipped to 2.21 sen from 7.3 sen, according to the property group’s filing with Bursa Malaysia.

Quarterly revenue was down 9.48% to RM606.9 million from RM670.44 million in 2QFY2023.

Quarter-on-quarter, the group’s net profit fell 30.35% from RM174.45 million, while revenue dropped 6.35% from RM648.05 million.

For the first six months of FY2024, IOI Properties’ net profit slumped 71.61% to RM295.94 million from RM1.04 billion in the same period of FY2023, dragged by all business segments except property investment.  

Half-year revenue fell 7.86% to RM1.25 billion from RM1.36 billion, mainly due to lower sales from the property development segment in Malaysia and China.

IOI Properties group chief executive officer Lee Yeow Seng said he expects that the group's operating environment in Malaysia as well as its international operation (China and Singapore) to continue to face some headwinds.

“IOI Properties will continue to monitor the market and strategically time our launches to achieve a good take-up rate and maximise returns for IOI Properties and its shareholders. Additionally, IOI Properties remains focused on monetising completed inventories with more promotional sales campaigns,” Lee said in a statement.

Shares of IOI Properties closed seven sen or 2.99% lower at RM2.27 on Wednesday, with a market capitalisation of RM12.5 billion. The counter has risen 28.98% since the start of 2024, and gained over 100% in the past one year.

Source: The Edge