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Published: Monday May 21, 2012 MYT 6:46:00 PMUpdated: Monday May 21, 2012 MYT 10:03:53 PM
KUALA LUMPUR: Tebrau Teguh Bhd posted losses of RM436,000 in the first quarter ended March 31, 2012 compared with net profit of RM426,000 a year ago on slower construction business but it expects its property development activities to pick up.
It said on Monday its revenue fell 66.1% to RM12.05mil from RM35.57mil. Loss per share was 0.07 sen compared with earnings per share of 0.06 sen.
On its property development, it said revenue declined from RM1.5mil to RM270,000. It said that a year ago, revenue was contributed from sale of Oasis apartment and consideration from joint venture project.
Tebrau Teguh said, however, in the just ended quarter, revenue was from the sales of two units of old stock. Hence, gross profit was reduced from RM662,000 to RM88,000.
It said revenue declined following a slowdown in its construction activities, from RM34 million to RM12.8 million.
It attributed it a reduction of work in progress on the RM303mil contract awarded by the Johor State Secretary Incorporated in 2009. This saw gross profit reduced from RM2.0 million to RM757,000.
"The group looks forward to 2012 with greater optimism," it said, adding that it expects to report improved revenue and net profit in the second half.
It said the improvement would be from the launch of its The Botanica @ Bayu Puteri near end-2011. This project included 554 luxury apartments with a gross development value of RM170mil.
Tebrau Teguh also expected its cashflow to improve following the proposed sale of two parcels of land at a profit of RM12mil.
It was also upbeat about the construction activity is also expected to be better. It added the remainder of the RM303mil contract by the Johor State Secretary Inc would improve second half revenue and profit.
Tebrau Teguh also said that in January 2012, it was appointed by the Johor State Government to develop 413 acres of land known as Lot PTD 4589 and PTD 4590 Mukim Pantai Timur, Pengerang, Kota Tinggi, Johor.
The land, which belongs to the State Government, would be developed into a comprehensive mixed development, complementing the Petronas Refinery and Petrochemicals Integrated Development (Rapid).
"The project which is to be completed within two years will contribute significantly to future profits. Earthworks and site clearance contract valued RM154mil has since been received on April 1, 2012 and work had started.
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