I-Berhad net profit up 5.6% in Q2

PETALING JAYA: I-Berhad saw its net profit increase 5.6% to RM22.3 million in the second quarter (Q2) ended June 30, from RM21.1 million in the previous corresponding quarter.

Revenue for the quarter, however, shrank 18.8% to RM107.2 million, compared with RM131.9 million in the same period last year, attributed to lower revenue from its property development and leisure segments.

For the six-month period, I-Bhd’s net profit rose 11.1% to RM46.8 million against RM42.1 million a year ago, while revenue grew 10.9% to RM266.5 million from RM240.4 million previously.

The group’s executive chairman Tan Sri Lim Kim Hong said in a statement that the growth is mainly attributable to the growing demand in its higher-end King of the Hill – 8Kia Peng KLCC project in Kuala Lumpur City Centre.

“We expect to see continued sales for King of the Hill – 8Kia Peng in contrast to last year, which in turn will provide growth to I-Bhd for this year.”

In terms of segment performance, the group’s property development remains the largest revenue contributor for Q2 2018 with RM244 million being recorded, or 91.6% of the group’s total, while the leisure segment chipped in with RM17.9 million in revenue, or 6.7% of group revenue.

Meanwhile, Lim said the group is targeting to achieve a 10% return by the end of the next five-year plan period, driven by a two-pronged strategy of further top line growth and operational improvements.

Over the past three years, I-Bhd has achieved an average return on equity of about 7%.

“The group envisages greater adoption of digital technology that will help achieve our goals. In the initial stage, the strategy was to incorporate digital technology as part of the infrastructure backbone for i-City, setting it apart from the other property development and giving it a competitive edge in terms of marketing.

“Continuing with this strategy in the upcoming five years, I-Bhd will move to expand on its usage to enhance operations with technology,” he added.