IOI 3Q net profit up on higher contributions from abroad

Source: The Edge

KUALA LUMPUR: IOI Properties Group Bhd’s net profit grew 24.7% to RM194.7 million for the third quarter ended March 31, 2019 (3QFY19), from RM156.16 million for the previous corresponding quarter, mainly on higher operating profit from property development in China and higher share of profit in joint ventures arising from the sale of South Beach Residences in Singapore.

Its earnings per share improved to 3.54 sen for 3QFY19 from 2.84 sen previously.

Quarterly revenue, however, fell 4.5% to RM487.74 million compared with RM510.52 million a year ago, mainly due to lower contributions from the property development segment, according to its filing with Bursa Malaysia yesterday.

IOI Properties said the property development segment recorded an 8% drop in revenue to RM350.2 million for 3QFY19, while operating profit jumped 73% year-on-year to RM121.8 million mainly due to higher contributions from its development projects in China.

For the cumulative nine months (9MFY19), IOI Properties’ net profit grew 4.57% to RM521.52 million from RM498.71 million for 9MFY18, while revenue decreased 17.72% to RM1.7 billion from RM2.07 billion.

IOI Properties said its residential developments in IOI Palm City, Xiamen achieved strong take-up rates, contributing positively to the results of the group despite uncertainties in the global environment arising from ongoing trade conflicts.

“Property development in China is anticipated to sustain its positive impact on the group’s financial results as the group proceeds with its residential developments in Xiamen with total gross development value of approximately one billion yuan to be launched within the next quarter.”