IOI Properties 1Q net profit up 22% on better contributions from China, Klang Valley

Source: The Edge Markets

KUALA LUMPUR (Nov 25): IOI Properties Group Bhd’s (IOIPG) net profit rose 22% to RM136.64 million for the first financial quarter ended Sept 30, 2019 (1QFY20) from RM111.96 million a year ago, mainly due to higher operating profit contributed from development projects in China and the Klang Valley, as well as higher share of profit in joint ventures.

This resulted in a higher earnings per share of 2.48 sen for 1QFY20 compared with 2.03 sen for 1QFY19.

However, revenue for the quarter fell 2.3% to RM540.32 million from RM552.81 million in 1QFY19, mainly due to lower sales from Singapore and Johor operations arising from lesser units remaining for sale.

In a bourse filing today, IOIPG said for the Johor operations, most of the remaining unsold units are pending for Bumiputera release from the governing authority.

Retail properties of its property investment segment continue to enjoy healthy occupancy levels, said IOIPG, with good rental yields generating a recurring income stream for the group.

It added that the construction of the group's future investment properties such as Central Boulevard in Singapore and IOI City Mall Phase 2 in Malaysia are progressing well.

Looking ahead, the group said it remains focused on the affordable housing segment. Barring any unforeseen circumstances, it expects to continue to deliver satisfactory performance in the coming quarters.

IOIPG shares closed three sen or 2.54% lower at RM1.15 today, for a market capitalisation of RM6.33 billion.