En­corp net profit halves to RM4m in third quar­ter

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Prop­erty de­vel­oper En­corp Bhd saw its net profit in the third quar­ter ended Sept 30, 2016 (Q3FY16) halved to RM4.09 mil­lion, from RM8.18 mil­lion in the same pe­riod last year.

How­ever, its rev­enue more than dou­bled to RM79 mil­lion, from RM38.06 mil­lion in the pre­vi­ous cor­re­spond­ing quar­ter, re­sult­ing from the ra­tio­nal­i­sa­tion of the group’s op­er­a­tions and projects.

For the nine months pe­riod, the group recorded a net profit of RM11.8 mil­lion, against a net loss of RM3.03 mil­lion a year ago. Rev­enue in­creased 42.4% to RM214.5 mil­lion, from RM150.6 mil­lion pre­vi­ously.

In a fil­ing with Bursa Malaysia yes­ter­day, the prop­erty de­vel­oper said cou­pled with close mon­i­tor­ing and ef­fec­tive man­age­ment of the in­di­rect and di­rect costs of the group, its profit be­fore tax­a­tion was RM6.3 mil­lion, com­pared with a loss be­fore ex­cep­tional items and tax­a­tion of RM1 mil­lion pre­vi­ously.

En­corp said it ex­pects the prop­erty sec­tor to re­main chal­leng­ing in light of the strin­gent lend­ing rules im­posed by banks and over­sup­ply in cer­tain prop­erty sub-sec­tor mar­ket.

With the chal­lenges ahead, it added, the group will fo­cus on mea­sures to in­crease ef­fi­cien­cies and to pur­sue in­no­va­tive con­cepts to en­hance its de­vel­op­ment projects.

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