IOI properties FY18 net profit falls to RM783.63 mln

KUALA LUMPUR: IOI Properties Group Bhd’s net profit fell to RM783.63 million for the financial year ended June 30, 2018 (FY18) from RM920.87 million in the previous year.

Revenue slipped 33 per cent year-on-year to RM2.79 billion from RM4.19 billion previously.

In a filing with Bursa Malaysia yesterday, the company attributed its weaker financial performance in the current period to lower contribution from Klang Valley and overseas projects in both, Singapore and China in the property development segment.

Moving forward, the company said it remained cautiously optimistic that demand for properties in strategic locations with good transportation infrastructure and close proximity to amenities would continue to draw prospective buyers.

On the international front, IOI Properties expects higher sales contribution from its residential development in Xiamen, China in the coming financial year.

In Singapore, the government recently introduced new curbs on residential properties, but marketplace expectations indicate that these effects could be temporary, it said.

On the property investment segment, despite competitive market environment for office leasing, the group said it would continue to manage its portfolio of investment properties to ensure that they were well occupied to generate a steady stream of recurring revenue.

For the hospitality and leisure segment, the group succeeded in maintaining market share for its hotels despite the challenging situation in an increasingly environment with many new hotels envisaged to be launched.

With sizeable land bank in strategic locations in Malaysia and overseas, coupled with strong track record in delivery, the group is well-positioned to adapt to market conditions in both Malaysia and overseas, it added. — Bernama