I-Bhd posts RM58.7mil net profit in FY18

I-Bhd executive chairman Tan Sri Datuk Lim Kim Hong.

PETALING JAYA: Property developer I-Bhd posted a net profit of RM58.7mil as revenue came in at RM375.1mil for the financial year ended Dec 31, 2018 (FY18).

Despite the challenging property market, the group said the results for FY18 were “credible” as it continued to improve the performance of its leisure and property investment segments.

With the group’s adoption of the new MFRS accounting policies in January 2018, the property developer said its net profit for 2017 amounted to RM63.2mil, with revenue adjusted to RM455.2mil.

Property development segment remained the biggest contributor, accounting for 96% of total segmental results in 2018.

“Five years ago, we embarked on a plan to establish a RM1bil investment property portfolio to have a strong recurring income stream to balance the cyclical earnings from the property development segment,” it said.

I-Bhd group executive chairman Tan Sri Lim Kim Hong said 2018 was a transition year as the capital employed for the property investment segment last year was higher than the property development segment.

Going forward, Lim said the group would bank on its long-term value proposition although it foresaw a gloomy property market in the near term from the overhang of unsold properties in the country.

He said the investment properties that were under construction over the past few years would contribute to the group’s bottom line from this year onwards.

Central i-City Mall will be opened to the public, with the soft opening on March 23 and official opening scheduled on April 27.

“We see this having a positive impact on our car park utilisation and demand for the other commercial spaces at centralWalk in the coming years,” Lim said.

Meanwhile, he believed the opening of the i-City Convention Centre and SnoWalk attraction would help to drive additional traffic to i-City.

“Recent comments by Yang Berhormat Amirudin Shari, Selangor Mentri Besar, on the potential of i-City being the state’s ‘Golden Triangle’ area, excites us and bears testament to what we are building here.

“In fact, we believe i-City is already well on its way to being the heart of Selangor’s Golden Triangle, given the levels of economic opportunities on hand, with its unique blend of corporate, residential and leisure components key ingredients of almost-perfect living,” Lim said.