IOI Properties Q2 net profit jumps to RM214.8m

Source: The Star

KUALA LUMPUR: IOI Properties Group Bhd's profit in the second quarter ended Dec 31, 2018 was boosted by property development in China and higher share of profit in joint ventures arising from the sale of South Beach Residences in Singapore and foreign currency translation gain.

It said on Tuesday its net profit rose 120.5% to RM214.86mil from RM97.45mil a year ago. Earnings per share were 3.9 sen compared with 1.77 sen.

At the pre-tax level, it explained that after excluding foreign currency translation gain of RM12.20mil, its pre-tax profit was 59% higher at RM342.80mil than the RM215.60mil a year ago (after exluding forex translation gain of RM23.60mil and share of impairment loss in joint venture of RM79.70mil).

However, IOI Properties' revenue fell 4% to RM666.20mil from RM695.41mil mainly due to lower contributions from the property development segment.

Its property development reported a 7% decline in revenue of RM519.20mil due to lower progress billings from ongoing projects in Malaysia as the current quarter sales were mainly from completed projects.

However, the operating profit of RM222.20mil was 70% higher mainly due to higher profit contribution from the development projects in China.

As for property investment, revenue and operating profit of RM91.3mil and RM53.7mil respectively was RM9.3mil or 11% and RM5.2mil or 11% higher on-year mainly due to higher occupancy and rental rates secured by the retail and office segments.

For the hospitality and leisure, revenue increased by 1% from RM52.4mil to RM53.1mil, while the operating profit decreased by 16% from RM10.5mil to RM8.8mil.

For the first half, its net profit fell by 4.6% to RM326.82mil from RM342.55mil in the previous corresponding period. Its revenue declined by 22.3% to RM1.226bil from RM1.578bil.