IOI Properties records robust net profit, sales in 2Q

KUALA LUMPUR: IOI Properties Group Bhd achieved commendable sales of RM926.6mil in the first six months to Dec 31, 2023 (1H23).

"Local projects contributed RM796.6mil, which is 86.0% of the total sales while overseas projects from China and Singapore contributed RM130.0mil, or 14.0% of the total sales," IOI Properties said in a statement.

On the Malaysian front, the property group said the sales secured were largely from Klang Valley area at RM473.4mil, led by its integrated development at IOI Resort City in Putrajaya and its matured township at Bandar Puteri Puchong in Selangor, whereas the sentiment in Johor continues to surge with sales of RM305.5mil.

"Amid the challenging external environment, the property development segment continues to witness encouraging demand for our product offerings, especially the mid-priced range residential units," it said.

"In view of this, we will continue to meet the needs of the market by ensuring cost-effectiveness throughout our developments, allowing for the delivery of competitive mid-priced ranged homes," chief executive officer Datuk Voon Tin Yow said.

"The group's strategy is two-pronged: to launch new products with sustained margin as well as a concerted effort to clear completed inventories by leveraging on our "Trusted." Brand and our proven promotion campaigns to drive sales."

In the second quarter ended Dec 31, IOI Properties' net profit more than tripled to RM402mil, or earnings per share of 7.30 sen against RM125.7mil, or 2.29 sen a year prior.

Revenue, however, dipped 4.9% to RM670.4mil from RM704.8mil in the same quarter a year earlier.

For the first six months to Dec 31, the developer posted a net profit RM1.04bil on revenue of RM1.36bil.

Moving forward, the group said the operating environment both within and outside Malaysia would continue to face some headwinds.

"Nevertheless, our planned new launches, wide product offerings and recurring earnings from various matured property investment portfolios, as well as improving prospects for the tourism sector will provide us with a strong foundation to assure sustained earnings for the group," it said.

Source: The Star