IOI Properties posts 93% rise in 3Q net profit on lower taxation

KUALA LUMPUR (May 26): IOI Properties Group Bhd posted a 93.2% year-on-year jump in its third quarterly net profit ended March 31, 2023 (3QFY2023) to RM115.38 million from RM59.72 million on lower taxation. 

As such, earnings per share rose to 2.1 sen from 1.09 sen a year earlier, according to the group's filing. 

The taxation for the quarter under review was lower at RM36.7 million compared to RM155.08 million previously.

Revenue for 3QFY2023, meanwhile, declined 23.5% to RM564.67 million from RM737.39 million on lower performance from the property development segment mainly due to lower sales contribution from China’s operations, which were disrupted by the resurgence of Covid-19. 

For the cumulative nine months (9MFY2023), the group’s net profit more than doubled to RM1.16 billion from RM394.26 million, while revenue increased slightly to RM1.93 billion from RM1.87 billion. 

In a statement, IOI Properties said the property development segment achieved sales with contracts exchanged at RM1.37 billion for 9MFY2023. 

Local projects contributed RM1.14 billion, which is 83% of the total sales and the sales secured were largely from the Klang Valley region (RM645.6 million), followed by Johor (RM457.4 million). 

Overseas projects from China and Singapore contributed RM226.5 million or 17% of total sales. 

Following the recent increase in overnight policy rate (OPR) by Bank Negara Malaysia, group chief executive officer Datuk Voon Tin Yow said IOI Properties will continue to enhance its developments and focus on offering mid-priced range residential units who are less sensitive to the OPR hike. 

Looking at higher property prices and the increase in additional buyers’ stamp duty (ABSD), in Singapore, there will be some impact on the group's upcoming Marina Bay project as foreign demand could be dampened, he said.

The measure is targeted to promote a sustainable property market and to prioritise housing for owner-occupiers where the increase in ABSD rate is expected to affect a small percentage of residential property

"Nevertheless, the development which is situated at a strategic location should still be able to command resilient demand from the local Singaporean buyers who have strong spending and purchasing power, underpinned by Singapore’s robust economy," Voon added. 

On Friday, IOI Properties closed up one sen or 0.91% to RM1.11, translating into a market capitalisation of RM6.11 billion. 

Source: The Edge